NOTICE OF MEETING OF THE CITY COUNCIL OF BUDA, TEXAS 6:30 P.M. – Tuesday, May 5, 2015 Council Chambers, 121 Main Street Buda, TX 78610
This notice is posted pursuant to the Texas Open Meetings Act. Notice is hereby given that a Regular City Council Meeting of the City of Buda, Texas, will be held at which time the following subjects will be discussed and may be acted upon.
A. CALL TO ORDER B. INVOCATION Pastor David Sweet of Hays Hills Baptist Church C. PLEDGE OF ALLEGIANCE D. ROLL CALL E. PROCLAMATION National Firefighters Week, Week of May 4, 2015 Acceptance by Fire Chief Clay Huckaby and Fire Department Staff F. PUBLIC COMMENTS At this time, comments will be taken from the audience on non-agenda related topics for a length of time not to exceed three minutes per person. To address the City Council, please submit a Citizen’s Comment form to the City Secretary prior to the start of the meeting. No action may be taken by the City Council during Public Comments.
G. WORKSHOP G.1 Workshop and presentation by Mr. Eric Nelson with Lockwood Andrews and Newnam with direction to staff on revising the Austin Criteria Manuals adopted by the City of Buda City Engineer Stanley Fees H. CONSENT AGENDA All matters listed under this item are considered to be routine by the City Council and will be enacted by one motion. There will not be separate discussion of these items. If discussion is desired by any Council Member on any item, that item will be removed from the consent agenda and will be considered separately.
H.1 Approval of the April 21, 2015 City Council meeting minutes City Secretary Alicia Ramirez H.2 Consideration to adopt the City of Buda Updated Financial Policy dated May 2015 Finance Manager Sidonna Foust H.3 Consideration to adopt a Resolution revising the City of Buda Investment Policy in accordance with Texas Public Funds Investment Act Finance Manager Sidonna Foust
City Council Agenda Page 1 of 3 May 5, 2015
I. PRESENTATIONS
I.1 Presentation by the Capitol Area Council of Governments (CAPCOG) on their Air Quality Program Planning Director Chance Sparks, CAPCOG Air Quality Program Manager Andrew Hoekzema and CAPCOG Air Quality Specialist Fred Blood
J. REGULAR AGENDA
J.1 Deliberation and possible action on the approval of a Supplementary Agreement with AECOM for the Wastewater Treatment Plant expansion project for designing a new Effluent Force Main and upsizing the Garison Road influent gravity wastewater line to the Wastewater Treatment Plant and authorizing the City Manager to execute the Supplementary Agreement City Engineer Stanley Fees
J.2 Presentation, deliberation and possible action regarding Texas Department of Agriculture, “Certified Retirement Community Program” Economic Development Director Ann Miller
K. EXECUTIVE SESSION City Council will recess its open session and convene in executive session pursuant to Government Code §551.071 Consultation with Attorney to deliberate with legal counsel for legal advice regarding the provision of public utilities within the City of Buda.
L. CONVENE INTO REGULAR SESSION AND TAKE ACTION, IF ANY, ON MATTERS DISCUSSED IN EXECUTIVE SESSION.
M. STAFF REPORT
N. CITY MANAGER’S REPORT City Manager Kenneth Williams • 2014 Bond Program • Library Projects • Capital Improvement projects • Parks & Recreation Department • Developments • Planning Department • Drainage projects • Road projects • Engineering Department • Special projects • Finance Department • Tourism Projects • Grant related projects • Transportation • Law Enforcement • Wastewater projects • Legislative Update • Water projects O. ITEMS OF COMMUNITY INTEREST P. CITY COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS Q. ADJOURNMENT
City Council Agenda Page 2 of 3 May 5, 2015
Requests for accommodations must be made 48 hours prior to the meeting. Please contact the City Secretary at (512) 312-0084, or FAX (512) 312-1889 for information or assistance. I, the undersigned authority, do hereby certify that the above Notice of Meeting of the Governing Body of the City of Buda, was posted on the bulletin board in front of Buda City Hall, which is readily accessible to the public at all times, by 7:00 pm on May 1, 2015.
/s/______Alicia Ramirez, TRMC City Secretary
Council Chambers are set up to publicly broadcast meetings. You may be audio and video recorded while in this facility. In accordance with Article III, Section 3.10, of the Official Code of the City of Buda, the minutes of this meeting consist of the preceding Minute Record and the Supplemental Minute Record. Details on Council meetings may be obtained from the City Secretary’s Office, or video of the entire meeting may be downloaded from the website. (Portions of the Supplemental Minute Record video tape recording may be distorted due to equipment malfunction or other uncontrollable factors.) The City Council may retire to executive session any time between the meeting’s opening and adjournment for the purpose of consultation with legal counsel pursuant to Chapter 551.071 of the Texas Government Code; discussion of personnel matters pursuant to Chapter 551.074 of the Texas Government Code; deliberation regarding real property pursuant to Chapter 551.072 of the Texas Government Code; deliberation regarding economic development negotiations pursuant to Chapter 551.087 of the Texas Government Code; and/or deliberation regarding the deployment, or specific occasions for implementation of security personnel or devices pursuant to Chapter 551.076 of the Texas Government Code. Action, if any, will be taken in open session. This agenda has been reviewed and approved by the City’s legal counsel and the presence of any subject in any Executive Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion. Attendance by Other Elected or Appointed Officials: It is anticipated that members of other governmental bodies, and/or city boards, commissions and/or committees may attend the meeting in numbers that may constitute a quorum of the body, board, commission and/or committee. Notice is hereby given that the meeting, to the extent required by law, is also noticed as a possible meeting of the other body, board, commission and/or committee, whose members may be in attendance, if such numbers constitute a quorum. The members of the boards, commissions and/or committees may be permitted to participate in discussions on the same items listed on the agenda, which occur at the meeting, but no action will be taken by such in attendance unless such item and action is specifically provided for on an agenda for that body, board, commission or committee subject to the Texas Open Meetings Act.
City Council Agenda Page 3 of 3 May 5, 2015
Proclamation
Whereas, Our Nation's firefighters respond to more than 2,300,000 fires and 8,700,000 additional emergencies; they will, as they do every year, save thousands of lives and millions of dollars’ worth of property through their dedicated efforts; recognizing their job, by far, as one of the Nation's most dangerous, and their sacrifices are many; and
Whereas, Many firefighters are volunteers, and many lose their lives in the course of duty;
Whereas, In an average year, 110 firefighters are killed in the line of duty; the work of these brave men and women is not often adequately recognized, they are quite often the very first people we can expect to respond--day or night--when the safety of our lives or our homes is in jeopardy; and
Whereas, Our City offers special thanks to its firefighters; remembering the men and women who protect us and who give their lives in the line of duty; they all are heroes; and
Whereas, By honoring these heroes, we pay special tribute to the spirit of community and unselfishness that is such an integral part of their character; Firefighters are inspirational examples for all of us and are worthy of our highest praise for their tireless devotion to fulfilling their sacred responsibilities to society; and
Whereas, Let us also thank the generous members of the many organizations that constantly work toward the mutual goals of firefighter health and safety; and enhancing public awareness of the courage and supreme devotion of our Nation's firefighters.
Now, Therefore, I, Todd Ruge, Mayor, on behalf of the City of Buda City Council, do hereby proclaim May 4, 2015, as National Firefighters Day
And call upon all public officials and the citizens of Buda to observe this day by showing your support by wearing blue and red ribbons (tied together, symbolizing the combination of fire and water) and help raise to awareness and support for your local firefighting operation
IN TESTIMONY WHEREOF, I have hereunto set my hand and caused to be affixed the Seal of the City of Buda, Texas, this 5th day of May, 2015.
______Todd Ruge, Mayor
Agenda Packet - Page 4 of 192 CITY COUNCIL MINUTE RECORD Page 1 The City of Buda, Texas Volume 134 Tuesday, April 21, 2015
CALL TO ORDER Mayor Ruge called the meeting to order at 6:30 p.m. ROLL CALL Alicia Ramirez, City Secretary, certified a quorum with the following Council Members present: Mayor Todd Ruge Mayor Pro Tem Bobby Lane Council Member Angela Kennedy Council Member Eileen Altmiller Council Member Wiley Hopkins Council Member Jose Montoya Council Member George Haehn Brian LaBorde, Assistant City Manager City Staff in attendance: City Secretary Alicia Ramirez, City Engineer Stanley Fees, Chance Sparks, Planning Director, Chief of Police Bo Kidd, Library Director Melinda Hodges, Tourism Director Lysa Gonzalez, Parks & Recreation Director Drew Wells, Public Works Director Mike Beggs, Water Specialist Brian Lillibridge, Economic Development Director Ann Miller, and Executive Assistant Isabel Fernandez. PROCLAMATIONS NATIONAL LIBRARY WEEK
Acceptance was made by Library Director Melinda Hodges and Library Commission Members.
NATIONAL CRIME VICTIM RIGHTS WEEK APRIL 19-25, 2015
Acceptance was made by Hays County Crime Victims Services Representatives Gabriella Lara and Maggie Alvos, and City of Buda Police Department Crime Victim Service Coordinator Brittany Tate.
PUBLIC COMMENTS Public comment was made by Stacy Morgan of 165 Enchanted Woods Trail, Buda, TX, inviting the public to the National Fire Fighters day event at Fire Station #1 5:30 -7 on Monday, May 4th.
Brian Poff of 726 Mesa Drive, Buda, TX; Grey Whittenburger of 407 Dawn View, Dripping Springs, TX; David Crowell of 4200 FM 150, Kyle, TX; Lila Knight of 1701 Burleson, Kyle, TX; Louie Bond of 1200 Todo Lane, Kyle, TX; Vicky Hujsak of 505 Deer Lake Road, Wimberley, TX; Ashley Wittenburger of 407 Dawn View, Dripping Spring, TX; Sherry Overton of 950 Lonesome Trail, Driftwood, TX; Susan Gates of 598 Lame Hoss Lane, Driftwood, TX; Craig Smith of 12910 Buckwheat Pass, Buda, TX; John Sanford of 12909 Lantana Trail, Buda, TX; Karen McBee of 1194 Rutherford Dr., Buda, TX; Daryl Raymond of 4111 Loma Verde of Buda, TX; John Hatch of 216 Lear Avenue, Buda, TX; Billy Gray of 767 Main Street, Buda, TX;
Agenda Packet - Page 5 of 192 Page 2 Minutes DATE
Rebecca Hatch of 216 Lear Avenue, Buda, TX; Ron Bell of 207 Bugtussle Lane, Lulling, TX; Eddy O’Dell of 1194 Rutherford Dr., Driftwood, TX;
EXECUTIVE SESSION
At 7:25 P.M., Council convened in Executive Session under the provision of Government Code, Title 5. Open Government; Ethics, Subtitle A. Open Government, Chapter 551. Open Meetings, Subchapter D. Exceptions to Requirement that Meetings be Open, §551.071 Consultations with Attorney and §551.072 on Deliberations about Real Property to deliberate and seek the advice of the city attorney on the following items: a) land acquisition of real property related to the Wastewater Treatment Plant Expansion Project; b) land acquisition related to the city facilities. Possible action may follow in open session; and consultation and deliberation with legal counsel for legal advice regarding the provision of public utilities within the City of Buda.
CONVENE INTO REGULAR SESSION AND TAKE ACTION, IF ANY, ON MATTERS DISCUSSED IN EXECUTIVE SESSION.
At 10:19 P.M., Council reconvened, and the following business was transacted, if any, on matters discussed in executive session. Motion, to authorize the City Manager to enter into purchasing agreement for all eases and encumbrances, was made by Mayor Pro Tem Lane and seconded by Council Member Altmiller. CONSENT AGENDA APPROVAL OF THE APRIL 7, 2015 AND APRIL 11, 2015 CITY COUNCIL MEETING MINUTES ADOPTION OF A RESOLUTION OF SUPPORT FOR THE EXPANSION OF FM 1626 BETWEEN FM 2770 TO RM 967 TO A FOUR-LANE FACILITY (#2015-R-05)
Motion, to approve the Consent Agenda, as presented, was made by Council Member Montoya and seconded by Council Member Altmiller. Motion carried unanimously.
PRESENTATIONS PRESENTATION AND DISCUSSION WITH POSSIBLE DIRECTION TO STAFF ON THE HAYS CALDWELL PUBLIC UTILITY AGENCY (HPCUA) OF THE PHASE 1A INFRASTRUCTURE FOR THE CITY OF BUDA
HPCUA Executive Director Graham Moore presented background information.
General discussion was held on the various crossings particularly due to the challenging topography.
REGULAR AGENDA PRESENTATION, DELIBERATION AND POSSIBLE ACTION REGARDING TEXAS DEPARTMENT OF AGRICULTURE, “CERTIFIED RETIREMENT COMMUNITY PROGRAM”
Mayor Ruge informed the item has been postponed until the next meeting.
STAFF REPORT REPORT ON ELECTRONIC HANDHELD DEVICES
Agenda Packet - Page 6 of 192 Minutes Page 3 DATE
Chief of Police Bo Kidd presented background information noting the Legislature passed House Bill 80; however, the bill only addresses texting whereas the Austin’s city ordinance prohibits any electronic handheld device.
Council Member Hopkins noted reports indicate a 90% decrease in device usage if an ordinance is adopted. Mayor Ruge added Austin received push back but have complied.
City Attorney George Hyde suggested if Council finds the City of Austin’s ordinance satisfactory, Buda should adopt a similar ordinance to avoid confusion due to proximity of the city, specifically in dealing with Municipal Court proceedings.
Responding to questions by Council, Mr. Hyde stated should state law pass, the state law would preempt the local law.
CITY MANAGER’S REPORT Assistant City Manager Brian LaBorde
• 2014 Bond Program • Library Projects • Capital Improvement projects • Parks & Recreation Department • Developments • Planning Department • Drainage projects • Road projects • Engineering Department • Special projects • Finance Department • Tourism Projects • Grant related projects • Wastewater projects • Law Enforcement • Water projects • Legislative Update
Parks & Recreation Director Drew Wells presented an update on the recent fishing event and thanked the Buda Fire Department for their assistance.
He announced the following upcoming events:
Buda Lions Club Weiner Races – April 25th and 26th.
City Spring Clean Up - May 2nd. He informed participants may bring non-hazardous materials to the Public Works Department site. Mr. Wells stated the event qualification is for city residents and staff will conduct verification.
ITEMS OF COMMUNITY INTEREST None. CITY COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS Mayor Ruge requested a National Fire Fighter Day, May 4th Proclamation for the next meeting.
ADJOURNMENT
Agenda Packet - Page 7 of 192 Page 4 Minutes DATE
Motion, to adjourn the meeting, was made by Council Member Montoya and seconded by Mayor Pro Tem Bobby Lane. Motion carried unanimously. There being no further business, the meeting was adjourned at 11:16 p.m.
THE CITY OF BUDA, TEXAS
______Todd Ruge, Mayor ATTEST:
______Alicia Ramirez, TRMC City Secretary
In accordance with Article III, Section 3.10, of the Official Code of the City of Buda, the minutes of this meeting consist of the preceding Minute Record and the Supplemental Minute Record. Details on Council meetings may be obtained from the City Secretary’s Office, or video of the entire meeting may be downloaded from the website. (Portions of the Supplemental Minute Record video tape recording may be distorted due to equipment malfunction or other uncontrollable factors.)
Agenda Packet - Page 8 of 192
City Council Agenda Item Report May 5, 2015
Agenda Item No. ______Contact – Stanley R. Fees, P.E., CFM, City Engineer 312-0084 [email protected]
SUBJECT: Workshop and presentation by Mr. Eric Nelson with Lockwood Andrews and Newnam with direction to staff on revising the Austin Criteria Manuals adopted by the City of Buda.
1. BACKGROUND/HISTORY
As part of the UDC re-write that is underway, staff decided to extract the technical criteria from the UDC and create individual technical manuals by discipline. The purpose of the project is to create a set of manuals, standard specifications, details and product lists. When the City of Austin updates its manuals these updates automatically impact Buda.
2. FINDINGS/CURRENT ACTIVITY
Staff started meeting bi-weekly with Eric Nelson with Lockwood Andrews and Newnam (LAN) in September 2013 to go through the Austin Criteria Manuals and use them as a template with the intent of creating a set of criteria manuals for the City of Buda.
Staff decided to use the City of Austin’s criteria, specifications, details and product lists as a template and to merge current criteria from the UDC into the template to fit the needs of Buda. The template for the criteria manual will be organized by disciplines. The specifications, details and product lists will also be updated with the manuals.
Mr. Eric Nelson with Lockwood Andrews and Newnam (LAN) has prepared a White Paper on these proposed changes to the Austin Criteria Manuals. He will make a presentation on the proposed changes to these manuals recommended by staff and LAN. He will discuss the recommendations proposed from staff regarding the following:
Utilities (water and wastewater),
Agenda Packet - Page 9 of 192 Drainage, Environmental Transportation City of Austin standard specifications, details and Standard Product Lists.
3. FINANCIAL IMPACT
The creation of these technical manuals was not budgeted in the FY14-15 budget. LAN has provided a cost to create these technical manuals for $79,320.
4. ACTION OPTIONS/RECOMMENDATION
Staff is requesting direction from City Council to either proceed with revising the adopted Austin Criteria Manuals in the current fiscal year or to budget for these revisions to the Criteria Manuals in the FY 15-16 CIP.
If City Council decides to proceed with revising the adopted Austin Criteria Manuals this budget year, the LAN fee proposal will need to be presented for approval at a future City Council meeting.
5. ATTACHMENTS 1. White Paper 2. Presentation 3. Summary of changes to UDC
Agenda Packet - Page 10 of 192
April 30, 2015
Stanley Fees, PE, CFM 121 Main Street Buda, Texas 78610 Via email: [email protected]
RE: Unified Development Code Re-Write Technical Criteria Manuals & Standard Specification, Details & Product Lists
Dear Mr. Stanley Fees, PE, CFM:
In September 2013, the Engineering and Planning Department requested that we assist with the City’s effort to create Technical Criteria Manuals. This effort was in response to the capital improvement project to re-write the Unified Development Code (UDC) so the new Code would be separate from the technical criteria. The current technical criteria are a combination of local standards and a modification of the adopted City of Austin (COA) Utility, Drainage, Environmental, and Transportation Criteria Manuals. By adopting the COA Manuals, the City of Buda has also adopted the COA Standard Specifications, Details, and Product Lists. The following describes our understanding of the City of Buda’s current need, the actions that have been taken to address that need, and the remaining steps to complete the creation of new technical manuals.
First, the technical portions of the UDC have not been updated within the last 10 years, so many of the sections and paragraphs referenced in the COA Manuals by the UDC are no longer valid. At times, these invalid references have created confusion for stakeholders and the City employees. In addition, there have been changes that the City of Austin made in the past that the Engineering and Public Works Department may not have been aware of, or would have decided against. If the City of Buda were to create and adopt its own manuals, then any future changes made by the City of Austin would not automatically impact Buda.
Second, there are current technical standards in the UDC that are out-of-date or are no longer preferred by the Engineering and/or Public Works Department. For example, the maintenance of stormwater quality treatment facilities has become a burden on the Public Works Department, and the burden could continue to grow as more facilities are constructed with the rapid growth of the City. The City of Buda’s benchmark for stormwater quality treatment is 75% removal of total suspended solids, but the City of Austin’s is 87%. There are other best management practices (BMPs) that the City of Austin does not allow, that require less maintenance, and that should meet the City of Buda’s benchmark (assuming they are designed, installed, and maintained properly). If the City of Buda were to create and adopt their own manuals, then these other BMPs could be added when the new manuals are created.
Since the UDC is being re-written, now would be a convenient time to update references to the COA manuals in the current UDC and revise the technical criteria in UDC. Since an update of the references would be rather time consuming, the Engineering Department determined that the most efficient method to create new manuals would be to follow the following course of action:
1. use the COA manuals, specifications, details, and product lists as templates 2. meet bi-weekly to: a. review the COA manuals
102 Wonder World Dr. Ste. 303 • San Marcos, Texas 78666 • 512.396.4040 • Fax: 512.396.4046 • www.lan-inc.com
Agenda Packet - Page 11 of 192 Stanley Fees, PE City of Buda April 30, 2015 Page 2
b. review the current UDC for relevant and current technical criteria that would need to be inserted into the templates c. discuss how to revise the COA template to fit the City of Buda’s preferences and needs 3. revise the template manuals, specifications, details, and product lists based on the information collected during the bi-weekly meetings.
Currently, the City of Buda is on Step #3 above. I have organized the information collected during the meetings into a summary of changes and have included the summary as an attachment to this letter. I have also prepared a presentation for the City Council to explain and describe some of the changes that may interest the community and stakeholders. The presentation is also attached to this letter. The remainder of this letter will briefly summarize the changes that will be presented to the City Council.
Utility Criteria Manual First, there is 1 City Inspector that monitors installation of both capital improvement projects and improvements built by developers that are dedicated to the City. In order to reduce the burden on the City, the new infrastructure will be camera inspected at the contractor’s expense, and quality control testing will be performed by the contractor and witnessed by the City Inspector. The current process is the opposite.
Second, the Public Works Department has operating hours from 7 A.M. – 3:30 P.M, so the criteria manual would reference the posted operating hours. In particular, requests for inspections will no longer be allowed after the department is closed, unless there is an emergency.
Third, there is a current issue with contractors tracking mud and soil onto the City’s streets. To address this issue, contractors/builders will be required to vacuum-sweep roads during home construction at 2-week intervals, before forecasted rain events, and after rain events. This should help reduce sediment that is tracked onto streets from being washed into the storm water conveyance system.
Fourth, an issue has been raised at City Council meetings about vehicles not having any access along open City streets because of construction vehicles and equipment. Construction parking limits on City streets will be limited so that at least one clear lane of access is provided for emergency vehicles, which should also allow for City work vehicles and passenger vehicles to pass. Slide #9 shows a photo that was taken during March (2015) in Elm Grove Section 3 that shows how these congested work zones can block access.
Fifth, the Public Works Department is also having difficulty accessing and maintaining the City’s infrastructure, so a new restriction will be added that prohibits landscaping within 5-feet of City utilities. Slide #10 shows some examples of landscaping that has overtaken fire hydrants, clean- outs, and meter boxes.
Sixth, the Planning Department has developed façade standards, so the manual will explicitly require enclosures around lift stations to meet the façade standards. Slide #11 shows the product that was used for the enclosure of the lift station at the Buda Elementary School, which would meet the façade standard.
Seventh, the Public Works Department raised concerns during our meetings about cross- contamination and maintenance of water utilities in the recently constructed multi-family developments. All of the water lines inside the facilities are on the private side of the master meter, so the lines are not controlled or maintained by the City of Buda. The Fire Marshall also expressed
Agenda Packet - Page 12 of 192 Stanley Fees, PE City of Buda April 30, 2015 Page 3
safety concerns and questioned the reliability of fire hydrants that were not maintained by the City. A requirement will be added that requires a City meter for each building so that the water line and fire hydrants can be maintained by the City.
Eighth, there have been some situations in the past with commercial developments that have one water meter, multiple tenants, and one tenant causes surcharges for the entire complex. In the new manual, any tenant that has a grease trap will be required to have a separate water meter to avoid this issue.
Last, potable water sample stations are required by the Texas Commission on Environmental Quality throughout residential subdivisions to monitor water quality. A requirement will be added to install the water sample stations near parks in a locked, insulated box (see example green box with green hose bibb on Slide #13). Currently the City must return after the developer and install the sample stations at the City’s expense.
Drainage Criteria Manual First, the currently adopted policies for the Floodplain Ordinance, Illicit Discharge Ordinance, and the current exemptions listed in the UDC will be added to the template manual. There did not appear to be a need to revise these policies at this time.
Last, the Public Works Department has had issues with some of the publicly maintained basin spillways and overflow embankments that have bull rock, so a requirement will be added to line both with reinforced concrete. Slide #15 shows a maintenance issue in Whispering Hollow where a bush began growing in the middle of the spillway, which could eventually undermine the structural integrity of the spillway if not removed. Also, the bull rock on some spillways has eroded so Public Works has had to install a reinforced concrete spillway as a repair.
Environmental Criteria Manual First, the currently adopted policies for the Water Quality Ordinance and current exemptions (outside recharge/contributing zones) listed in the UDC will be added to the template manual. There did not appear to be a need to revise these policies at this time.
Second, the Lower Colorado River Authority (LCRA) manual is currently adopted by the UDC, and TCEQ BMPs are required for improvements in the recharge zone. The new manual will allow LCRA and TCEQ designs on a case-by-case basis with the City Engineer’s approval. Allowing both just continues the current practice and allows for BMPs that may not be in the current template.
Third, extended detention basins (based on TCEQ’s design and maintenance criteria) will be added to the template. This BMP meets the City’s current criteria for 75% removal of total suspended solids, but it is currently not allowed by the City of Austin. The Public Works Department is concerned about the time and expense to maintain sand filters and wet ponds. In comparison, extended detention ponds should require less maintenance. Allowing this BMP meets the City’s current water quality goal and meets the needs of the Public Works Department.
Fourth, any publicly maintained BMP shall be an extended detention basin, a vegetated filter strip, or a combination of both (see Slide #19 for images of each), unless a substitution is approved by the City Engineer. The Public Works Department has limited resources, is uncomfortable getting in boats to maintain wet ponds, and is expecting a sizeable capital investment in the future to replace the sand in all of the existing sedimentation/filtration ponds.
Fifth, litter removal devices will be required at all new developments, especially wet ponds. Litter, trash, and “floatables” will be collected at a common point just before flow enters any publicly maintained facility. Litter increases the effort to maintain the basins. Commercial sites will be
Agenda Packet - Page 13 of 192 Stanley Fees, PE City of Buda April 30, 2015 Page 4
privately maintained. Options will not be limited to what is shown on Slide #20: inlet litter net/bin, hydrodynamic separator, a fore bay in a dry basin with a rock wall that extends above the overflow water elevation by 6-inches.
Last, the landscaping requirements will be eliminated from the template because the Planning Department plans to adopt landscaping standards in the new Code. There is no reason to duplicate the landscaping/buffering in two locations, which could create potential conflicts if revisions are made in the future.
Transportation Criteria Manual First, the City of Buda developed its own street classifications, so the City of Buda’s standards will replace those in the template. Thus, the template will be revised to match Buda’s preferences.
Second, sidewalks will be required to be offset 6-inches from the property line to provide more space for fire hydrants and other utilities between the back of the curb and sidewalk. The Public Works Department expressed this preference during the meetings. Slide #23 shows the preferred location of the fire hydrant between the curb and the sidewalk.
Third, the City of Buda’s current access management and driveway spacing requirements appear to be acceptable at this time, so the current standard will replace Austin’s spacing standards in the template.
Fourth, the template will be revised to refer traffic signal design and maintenance requirements to TXDOT standards instead of adopting Austin’s because TXDOT manages the timing of the signals in Buda.
Fifth, the City of Buda’s current standard is to stabilize pavement subgrade (see subbase course on the diagram on Slide #25 for reference) if soils have a high potential to shrink/swell (plasticity index ≥20). The Austin template has a higher index, so the template will be revised to match the City of Buda’s current standard.
Sixth, a concern for how quickly the new local streets are deteriorating was expressed during the meetings. To address this concern, a minimum hot-mix asphalt pavement thickness of 2-inches (instead of 1.5-inches) will be required. This should provide for a longer life span. A 2-inch surface course (see diagram on Slide #25 for reference) also allows for temporarily detouring traffic to new lanes with only one surface course, then finishing the entire road with a second course. Detouring traffic in this manner helps to deter any one lane from deteriorating at a more rapid pace than the others.
Seventh, the Engineering and Planning Department wanted to keep the current 100-peak hour trip threshold from the UDC. When estimated trips are equal to or greater than the threshold, a Traffic Impact Analysis is required. Austin’s manual does not have a threshold. There does not appear to be any issues with the City’s current practice so the threshold will remain in the manual.
Eighth, the Austin template does not clearly define the size and scope of the study area for the Traffic Impact Analysis (TIA) based on the estimated impact. Four categories were chosen that would require a more exhaustive analysis with greater estimated impacts. These categories should include all of the different size developments that are moving into the City, but not put the same burden on a small development as a very large development. The table shown on Slide #27 shows the four categories based on the estimated peak hour trips (PHT).
Last, the Austin template also requires multiple meetings to define the scope of the TIA. Instead of that system, the table on Slide #28 defines the scope of the TIA. The table can be used quickly by
Agenda Packet - Page 14 of 192 Stanley Fees, PE City of Buda April 30, 2015 Page 5
a developer’s traffic engineer to determine the breadth of the study, which should help developers budget and schedule accordingly to complete the TIA. The table should also assist the Engineering Department when a TIA is reviewed for completeness.
Miscellaneous As mentioned previously, the Austin standard specifications, details, and product lists are linked to the Austin manuals. These documents complete and expand upon the technical criteria and should be updated concurrently with the technical manuals. There are also numerous cross-references that could create future confusion if the manuals, specifications, details, and product lists are not revised at the same time.
I look forward to presenting these modification to the City Council next Tuesday, May 5th. If you have any questions, then please contact me by email at [email protected] or by phone at 512- 338-2746.
Regards,
Eric Nelson, PE Project Engineer
CC: Travis Michel, PE (LAN) File (160-10305-000-1.03)
Attachments
Agenda Packet - Page 15 of 192 Unified Development Code Re-Write
Technical Criteria Manuals & Standard Specifications, Details & Product Lists
5/5/2015
Agenda Packet - Page 16 of 192 Purpose
• Extract technical criteria from Unified Development Code to create individual technical manuals by discipline • Create a set of standard specifications, details and product lists
Technical Criteria Manuals 5/5/2015 2 Agenda Packet - Page 17 of 192 Need – “Press Your Luck”
Current UDC
The following shall be added at the end of section 2.9.2.B.4 of the…Austin Utilities Criteria Manual: "The…City Engineer may require air release valve on…"
Austin 2.9.2.B.4
Minimum depth of cover over the uppermost projection of the pipe Whammy: Austin revised and all appurtenances shall be as their manual and the follows… UDC reference is obsolete
Technical Criteria Manuals 5/5/2015 3 Agenda Packet - Page 18 of 192 Direction
• Use Austin’s criteria, specifications, details and product lists as a template, but: – Merge current criteria from UDC with template – Edit criteria based on Staff’s direction (bi- monthly meetings held since Sept. 2013)
Technical Criteria Manuals 5/5/2015 4 Agenda Packet - Page 19 of 192 Disciplines
• Utilities (Water, Wastewater & Reuse) – Inspections – Work in the right of way • Drainage • Environmental • Transportation • Miscellaneous (specifications, details, product lists)
Technical Criteria Manuals 5/5/2015 5 Agenda Packet - Page 20 of 192
Utilities - Inspection Requests
• New infrastructure to be camera inspected at contractor’s expense • Quality control testing to be performed by contractor and witnessed by Public Works (instead of vice versa)
Technical Criteria Manuals 5/5/2015 6 Agenda Packet - Page 21 of 192
Utilities - Inspection Requests
• Inspection request hours to match Public Works Department operating hours 7 A.M. – 3:30 P.M.
Technical Criteria Manuals 5/5/2015 7 Agenda Packet - Page 22 of 192 Utilities - Work in Right of Way Requests • Add requirements for contractor/builder to vacuum-sweep roads during home construction at 2-week intervals, before forecasted rain events, and after rain events
Technical Criteria Manuals 5/5/2015 8 Agenda Packet - Page 23 of 192 Utilities - Work in Right of Way Requests
• Add construction parking limits during home building to provide one clear lane of access to all traffic
Technical Criteria Manuals 5/5/2015 9 Agenda Packet - Page 24 of 192 Utilities - Work in Right of Way Requests • No landscaping to be allowed within 5-feet of City utilities
Technical Criteria Manuals 5/5/2015 10 Agenda Packet - Page 25 of 192 Utilities - Wastewater Requests
• Lift station enclosures to meet façade standards (ex. Buda Elementary)
Technical Criteria Manuals 5/5/2015 11 Agenda Packet - Page 26 of 192 Utilities - Water Requests
• New or replaced services to be polyethylene tubing instead of copper
• New multifamily to have separate domestic and fire lines • New multifamily to meter each building instead of a master meter for complex
Technical Criteria Manuals 5/5/2015 12 Agenda Packet - Page 27 of 192
Utilities - Water Requests
• Separate water • New subdivisions to services for each install potable water commercial unit with sample stations a grease trap
Technical Criteria Manuals 5/5/2015 13 Agenda Packet - Page 28 of 192 Drainage Requests
• No changes to the currently adopted policies for the following: – Floodplain Ordinance – Illicit Discharge Ordinance – Exemptions • Single Res. Lot • Non-Res. Lot <0.5 acres • <20% impervious cover • Vested rights
Technical Criteria Manuals 5/5/2015 14 Agenda Packet - Page 29 of 192
Drainage Requests
• All public basin spillways and overflow embankments armored with reinforced concrete (no bull rock)
Technical Criteria Manuals 5/5/2015 15 Agenda Packet - Page 30 of 192 Environmental Requests
• No changes to the currently adopted policies for the following: – Water Quality Ordinance – Exemptions (outside recharge/contributing zones) • ≤25 % imp. cover • Non-res. ≤5,000 sq. ft. imp. cover • 2 single family structures • 1 duplex res. structure
Technical Criteria Manuals 5/5/2015 16 Agenda Packet - Page 31 of 192
Environmental Requests
• Allow LCRA and TCEQ based designs/substitutions on case-by-case basis with City Engineer’s approval
Technical Criteria Manuals 5/5/2015 17 Agenda Packet - Page 32 of 192 Environmental Requests
• Add extended detention basins based on TCEQ’s design and maintenance criteria (48 hour drawdown)
Technical Criteria Manuals 5/5/2015 18 Agenda Packet - Page 33 of 192 Environmental Requests
• Public maintained facility to be either extended detention basin or vegetated filter strip (or combination), unless substitution is approved by City Engineer
Technical Criteria Manuals 5/5/2015 19 Agenda Packet - Page 34 of 192 Environmental Requests
• Institute litter removal devices on new construction, especially wet ponds
Technical Criteria Manuals 5/5/2015 20 Agenda Packet - Page 35 of 192 Environmental Requests
• Separate landscaping from technical criteria and adopt landscaping under new Development Code
Technical Criteria Manuals 5/5/2015 21 Agenda Packet - Page 36 of 192 Transportation Requests
• Keep Buda’s current street classifications instead of adopting Austin’s
Technical Criteria Manuals 5/5/2015 22 Agenda Packet - Page 37 of 192 Transportation Requests
• Offset sidewalks 6-inches from property line to provide more space for fire hydrants (preferred) (not preferred)
Technical Criteria Manuals 5/5/2015 23 Agenda Packet - Page 38 of 192 Transportation Requests
• Keep current access management and driveway spacing requirements (instead of adopting Austin’s)
• Refer traffic signal design and maintenance requirements to TXDOT standards
Technical Criteria Manuals 5/5/2015 24 Agenda Packet - Page 39 of 192
Transportation Requests
• Keep current standard to stabilize pavement subgrade if soils have a high potential to shrink/swell (plasticity index ≥20)
• Require a minimum hot- mix asphalt pavement thickness of 2-inches instead of 1.5-inches
Technical Criteria Manuals 5/5/2015 25 Agenda Packet - Page 40 of 192 Transportation Requests
• Keep current peak hour trip threshold of 100 peak hour trips to warrant a Traffic Impact Analysis
Technical Criteria Manuals 5/5/2015 26 Agenda Packet - Page 41 of 192 Transportation Requests
• Define scope of Traffic Impact Analysis (TIA) based on size of development
Traffic Impact Category Site Traffic Thresholds New Peak Hour Trips (PHT) on Adjacent Streets Category 1 PHT < 100 Category 2 100 to 499 Category 3 500 to 999 Category 4 PHT ≥ 1,000
Technical Criteria Manuals 5/5/2015 27 Agenda Packet - Page 42 of 192 Transportation Requests
• Simplify TIA requirements into a table Category Requirements 1 2 3 4 Access Management Data Summary Form A X X X X Access Management Data Summary Form B X X X General Meeting with the City Traffic Engineer X X X Proposal of Scope X X X Opening Year X X X Horizon Full Build-Out Year X X Analysis Area ¼ Mile ½ Mile ½ or 1 Mile All Site Access Driveways X X X All Site Access Private Street Intersections X X X Limits All Adjacent Signalized Intersections X X X All Adjacent Major Unsignalized Intersections X X X All Analysis Area Signalized Intersections X X All Analysis Area Major Unsignalized Intersections X X
Technical Criteria Manuals 5/5/2015 28 Agenda Packet - Page 43 of 192 Miscellaneous Requests
• Adopt/Modify Standards – Specifications – Details – Standard Product Lists
Technical Criteria Manuals 5/5/2015 29 Agenda Packet - Page 44 of 192 Questions
Technical Criteria Manuals 5/5/2015 30 Agenda Packet - Page 45 of 192 Thank You
Agenda Packet - Page 46 of 192 SUMMARY OF CHANGES TO THE UDC
General
Remove references to Austin’s Land Development Code Update with Buda personnel Update geographic references Coordinate w/ platting and acceptance rules. Builders should maintain all infrastructure until each phase of a subdivision is substantially occupied by buildings/homes. Remove metric measurements
Wastewater
Notable adjustments to Austin criteria and specifications. o Enclosure of lift station needs to reference building façade standards o Revise testing requirements: contractor to test new pipes, etc. o Only sand or pea gravel for pipe bedding o Concrete slab around manhole cover: require gravel backfill or flowable fill around cone up to bottom of slab o No plants within 5-feet of clean-outs o Force mains to be marked at 300-foot intervals
Water
Notable adjustments to Austin criteria and specifications. o No automatic flush valve: manual flush valve only o No copper water services o Valve spacing: no more than 500-foot spacing o Multi-family . Meter buildings, instead of master meter . Separate domestic and fire lines o Cul-de-sacs can be served by 4-inch main if no fire hydrant is required; otherwise minimum diameter of main to hydrant must be 8-inches o Ground storage tanks and elevated storage tanks should have separate fill and drain lines, unless approved by the City Engineer o No dual meter boxes o Commercial grease trap will require a separate water meter o Transmission mains to be marked at 300-foot intervals o Require potable water sample stations with new subdivisions, possibly near parks. Station must be lockable in a 5’x5’ easement. o No plants within 5-feet of meter box
Agenda Packet - Page 47 of 192
Working in Public ROW
Notable adjustments to Austin criteria and specifications. o Modify language to identify correct department for bonds o State that inspection request hours are 7:00-3:30 o Add construction parking/work equipment limits during home construction to provide/leave access for City Inspectors, emergency vehicles, and residential vehicles once road is open to regular traffic. Contractors and delivery vehicles are blocking streets during home building. o Vac-sweeper required during home construction once per 2 weeks and after a rain event.
Drainage
No changes to current floodplain ordinance. Manual to coordinate with ordinance. No changes to current exemptions. No changes to current illicit discharge ordinance. Notable adjustments to Austin criteria and specifications. o Bull rock will not be allowed on any spillway or embankment slope that conveys storm water. Bull rock will be allowed at the base of the embankment (i.e., splash pad). o No pipe in pavement subgrade, unless approved by City Engineer. o Contractor to camera entire underground system prior to final acceptance.
Environmental
No changes to existing water quality ordinance. Manual to coordinate with ordinance. No changes to current exemptions. Notable adjustments to Austin criteria and specifications. o Remove fee-in-lieu section, but note that the City may adopt fee-in-lieu by separate ordinance at a later date. o Wet ponds and sediment-filtration ponds will only be allowed as a last resort, if dedicated to the City. If approved by City, then more maintenance cost sharing by the developer to be required (15 years). o Extended detention (TCEQ criteria) to be primary storm water quality best management practice (BMP) when City will maintain BMP and detention is necessary. Vegetative filter strips will be encouraged when detention is not required.
Agenda Packet - Page 48 of 192 o LCRA and TCEQ guidelines will be allowed, as approved by City Engineer o Gross-solids (i.e., litter, trash, floatables) removal devices to be instituted . Commercial sites to be privately maintained . Residential/Regional/City Maintained BMPs: Ponds must have a centralized trash collection device to ease city maintenance o Erosion control blankets will be required in right-of-way after utilities are installed. Blankets will be required throughout the construction of homes after road and utilities are in place. o Landscaping section removed from manual since it is addressed elsewhere in the Code.
Transportation
Notable adjustments to Austin criteria and specifications. o Revise Traffic Impact Analysis guidelines (using City of Houston’s guidelines) . A study will still be required at the current 100 peak hour threshold . The amount of analysis will increase with greater numbers of peak hour trips based on three categories: 100-499, 500-999, 1000+ . The limits of the study will be more clearly defined instead of being proposed by the applicant o Revise street classifications to match adopted Transportation Master Plan. No changes to street widths planned at this time. Parking issues to be considered with next update to the Master Plan, unless directed otherwise. o Current driveway spacing to be used instead of Austin’s spacing requirements o Pavement subgrade must be stabilized if plasticity index is equal to or greater than 20 o Minimum Hot Mix Asphaltic Concrete thickness increased from 1.5” to 2.0” o Compact car parking not required o Change valet rules to recommendations o Signals section will refer to TXDOT standards since TXDOT maintains signals for the City o Vehicle classification counts to be collected prior to submitting a proposed pavement design. Truck percentages used in design to be calculated based on the collected vehicle counts. o Sidewalk to be offset at least 6-inches from property line. o Remove parking meters o No wire fabric reinforcement for sidewalks
Agenda Packet - Page 49 of 192
Other items to be adopted
Standard Product Lists: one front end document that is a summary of modifications, but no changes to SPLs otherwise. Standard Specifications: one front end document that is a summary of modifications, but no changes to Specifications otherwise. Standard Details (AutoCAD format): will be modified for criteria edits, references for Austin will be changed to Buda, and metric measurements will be deleted.
Agenda Packet - Page 50 of 192
City Council Agenda Item Report May 5th, 2015
Agenda Item Contact – Sidonna Foust 512-312-0084 [email protected]
Subject: Discussion and possible Action to adopt the City of Buda Updated Financial Policy dated April, 2015.
1. Background/History A Financial Policy was adopted in September 2013. We have made two modifications to the policy and they are described below.
2. Findings/Current Activity The following adjustments have been made to the existing Financial Policy that was adopted in September of 2013:
Page 27 – Section D – Added participation percent for HUB’s
The City requires a good faith effort for HUB participation. The City’s goal is 10% participation to include; HUB’s (Historically Underutilized Businesses), MBE’s (Minority Business Enterprises), DBE’s (Disadvantaged Business Enterprises), and SMB’s (Small Medium Businesses).
Page 45 – Added Contracts and Signatory Policy and Procedures
CONTRACTS AND SIGNATORY POLICY AND PROCEDURE Policy Statement Any type of agreement that obligates the City to provide payment, services, goods or use of City properties, facilities or other resources to an external party (hereinafter “contracts”) must be signed by the City Manager (Charter Section 5.01) or designee. Only the City Manager and those specific individuals authorized in this policy or in writing by the City Manager, through published policies or other authorizing documents, have the authority to enter into contracts on behalf of the City. The Finance Director and City Secretary shall be responsible for the development and administration of procedures to ensure compliance with this policy. Contracts which are not on City of Buda standard forms must be reviewed by Legal Counsel before being signed by an authorized City official. Individuals who execute contracts that are not authorized to do so may be personally liable for the obligations of the contract. Purpose To describe the requirements, procedures, and approval processes for City contracts and to define the delegation of authority deemed necessary and appropriate for the efficient administration of the City. This policy applies to all contracts that legally bind the City of Buda other than regular full-time staff employment contracts.
Agenda Packet - Page 51 of 192 Contract Guidelines The following guidelines apply to contracts between the City of Buda and any external party. Each Department Director is responsible for following the Comprehensive Financial Management Policy Statements, Section XII Purchasing Policy (Purchasing Policy) and authorized to execute orders on behalf of the city within the policy guidelines. Any interpretation of the guidelines necessary for the effective operation of the purchasing function will be made by the City Manager or a designee. Signatory Guidelines A. City Manager or designee shall sign: • Contracts, including grant agreements; personal, professional, and consultant services agreements; license agreements; and services agreements • Real property agreements, • Banking and other financial services agreements; and • Any other agreement, including purchase orders, for more than $50,000.00 in total revenue or expense.
Signatory authorization shall be in accordance with the Purchasing Policy. B. The Department Director shall sign: • Contracts, including service agreements and facility/space use agreements, • Other agreements of similar nature which generally are considered to be the department's responsibility within the City, which do not require the City Manager’s and/or Council’s approval.
Signatory authorization levels shall be in accordance with the Purchasing Policy. PROCEDURE The City of Buda Requisition of Goods or Services Form contains information and authorization for the approval of contract. The Form shall be completed prior to submittal to the City Manager for signature. All contract signatures shall be completed prior to submittal to the City Manager. CODE OF ETHICS Any individual entering into a contract on behalf of the City must accordingly exercise their authority in a manner consistent with Code of Ethics.
Reference 1) City of Buda Charter, Section 5.01:
The City Manager shall have the authority to execute on behalf of the City, standard form documents, including but not limited to deeds, releases of liens, rental agreements, easements, right-of-way agreements, joint use agreements, and other similar documents, under the following conditions: a. The execution of the document is necessary to carry out a public works project; utilize, maintain or improve a City facility, street, right-of-way, easement, park or other City property, or to implement other City policies; provided that such project, program or policy has been approved by the City Council; b. That all blanks are filled in on any document correctly and that such document is consistent with the objectives approved by the City Council; and c. That the form of such document shall be approved by the City Attorney.
Agenda Packet - Page 52 of 192 Reference 2) City of Buda Charter, Section 5.01:
The City Manager shall have the authority to execute on behalf of the City, standard form documents, including but not limited to deeds, releases of liens, rental agreements, easements, right-of-way agreements, joint use agreements, and other similar documents, under the following conditions: d. The execution of the document is necessary to carry out a public works project; utilize, maintain or improve a City facility, street, right-of-way, easement, park or other City property, or to implement other City policies; provided that such project, program or policy has been approved by the City Council; e. That all blanks are filled in on any document correctly and that such document is consistent with the objectives approved by the City Council; and f. That the form of such document shall be approved by the City Attorney.
3) Exhibit “A” - City of Buda’s Comprehensive Financial Management Policy Statements, Section XII Purchasing
4) Exhibit “B” - City of Buda Requisition of Goods or Services Form
3. Financial Impact The Financial Policy will ensure municipal resources are used wisely for services, public facilities, and infrastructure necessary to meet the immediate and long-term needs.
4. Action Options/Recommendation Staff recommends the adoption of the Financial Policy dated April, 2015.
Agenda Packet - Page 53 of 192
COMPREHENSIVE FINANCIAL MANAGEMENT POLICY STATEMENTS
May 2015
Agenda Packet - Page 54 of 192
Table of Contents
Objectives……………………………………………………………… ………….….Page 3
Section I. Accounting, Auditing and Financial Reporting……….………………Page 3
Section II. Budget and Long Range Financial Planning………………………… Page 5
Section III. Revenues……………………..……………………………………….Page 7
Section IV. Expenditures………………..…………………………………………Page 9
Section V. Fund Balance and Reserves……………………………………………Page 9
Section VI. Capital Expenditures and Improvements……………………………...Page 11
Section VII. Debt…………………………………………………………………...Page 13
Section VIII. Cash Management and Investments……………………..……….…....Page 15
Section IX. Grants and Intergovernmental Revenues……………………..…….…Page 16
Section X. Financial Consultants…………………………………………………..Page 17
Section XI. Internal Controls……………………………………………………..…Page 19
Section XII. Purchasing…………………….……………………………………..…Page 25
Section XIII. Investments…………………………………………………………….Page 35
Section XIV. Capital Assets Policy & Depreciation Guidance – GASB Statmt 34….Page 38
Section XV. Cash Management Internal Controls…………………...………………Page 40
Section XVI. Grant Accounting, Reporting & Internal Controls……………………..Page 43
Section XVII. Contracts & Signatory………………………………………………….Page 45
2 | Page
Agenda Packet - Page 55 of 192
Comprehensive Financial Management Policy Statements
Municipal resources must be wisely used to ensure adequate funding for the services, public facilities, and infrastructure necessary to meet immediate and long-term needs. These policy statements safeguard the fiscal stability required to achieve the City’s objectives and ensure long-term financial health.
Objectives:
A. To guide City Council and management policy decisions that have significant fiscal impact. B. To employ balanced revenue policies that provides adequate funding for services and service levels. C. To maintain appropriate financial capacity for present and future needs. D. To maintain sufficient reserves so as to maintain service levels during periods of economic downturn. E. To promote sound financial management by providing accurate and timely information on the City’s financial condition. F. To protect the City’s credit rating and provide for adequate resources to meet the provisions of the City’s debt obligations on all municipal debt G. To ensure the legal use of financial resources through an effective system of internal controls. H. To promote cooperation and coordination with other governments and the private sector in financing
I.
ACCOUNTING, AUDITING, AND FINANCIAL REPORTING
Maintain accounting practices that conform to generally accepted accounting principles and comply with prevailing federal, state, and local statutes and regulations. Provide for, prepare and present regular reports that analyze and evaluate the City’s financial performance and economic condition.
A. Accounting Practices and Principles The City will maintain accounting practices that conform to generally accepted accounting principles (GAAP) as set forth by the Governmental Accounting Standards Board (GASB), the authoritative standard setting body for units of local government.
All City financial documents, except monthly interim financial reports, including official statements accompanying debt issues, Comprehensive Annual Financial Reports and continuing disclosures statements will meet these standards. Monthly interim financial reports are on a cash basis and will be reported as budgeted. At year-end, the general ledger and financials will be converted to GAAP and GASB.
B. Financial and Management Reporting
3 | Page
Agenda Packet - Page 56 of 192
1. Interim Financial Reports will be provided quarterly to City Management and City Council that explain key economic and fiscal developments and note significant deviations from the budget. Budget detail reports will be distributed monthly by the end of each month for the prior month.
2. Quarterly, departments will report on program measures and indicators as compared to target and last year to Finance. A quarterly report will be submitted to the City Manager, highlighting significant variations.
3. As an additional independent confirmation of the quality of the City’s financial reporting, the City will annually seek to obtain the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting.
C. Annual Audit Pursuant to State Statute, the City shall have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit. The audit shall be performed by certified public accounting (CPA) firm, licensed to practice in the State of Texas. The annual financial statement, including the auditor’s opinion, shall be filed within 180 days after the last day of the City’s fiscal year.
The audit firm shall also provide a Single Audit of Federal and State grants, when necessary. An official Comprehensive Annual Financial Report (CAFR) shall be issued no later than six (6) months following the end of the fiscal year. The Finance Manager shall be responsible for establishing a process to ensure timely resolution of audit recommendations.
D. Audit Committee The City Council shall appoint or confirm the audit committee, consisting of at least three members of the City Council. The primary purpose of the audit committee is to assist City Council and the City Manager in fulfilling oversight responsibilities for financial reporting, audit processes, and effective internal control systems.
E. Annual Financial Disclosure As required by the Securities and Exchange Commission (SEC) Rule 15c2-12, the City will provide certain annual financial information to various information repositories through disclosure documents or set of documents that include the necessary information. This will include any periodic materials event notices as required by the SEC.
F. Signature of Checks Pursuant to the City Charter, all checks shall have two signatures, signed by the City Manager, Mayor, City Secretary, or the Finance Manager. Component unit check signers are officers elected by the board, where applicable. Component unit’s checks shall also have two signatures.
G. Compliance with Council Policy Statements The Financial Management Policy Statements will be reviewed bi-annually and updated, revised or refined as deemed necessary. Policy statements adopted by City Council are guidelines, and occasionally exceptions may be appropriate and required. Exceptions will be identified, documented, and presented by the City Manager to the City Council.
4 | Page
Agenda Packet - Page 57 of 192
II.
BUDGET AND LONG RANGE FINANCIAL PLANNING
A. Balanced Budget The City Manager shall file annually, a structurally balanced budget for the ensuing fiscal year with City Council pursuant to prevailing state and local law. A structurally balanced budget is further defined as recurring revenues funding recurring expenditures and adherence to fund balance policies. Short-term loans should be avoided as budget balancing techniques.
B. Current Funding Basis (Recurring Revenues) The City shall budget and operate on a current funding basis. Recurring expenditures shall be budgeted and controlled so as not to exceed current revenues. Recurring expenses will be funded exclusively with recurring revenue sources to facilitate operations on a current funding basis.
C. Use of Non-Recurring Revenues Non-recurring revenue sources, such as a one-time revenue remittance of fund balance in excess of policy can only be budgeted/used to fund non-recurring expenditures, such as capital purchases or capital improvement projects. This will ensure that recurring expenditures are not funded by nonrecurring sources.
D. Tax Rate The City Manager will recommend a tax rate that the City finances require in order to operate efficiently, yet effectively, and pay its debt.
E. Revenue Estimating for Budgeting 1. In order to protect the City from revenue shortfalls and to maintain a stable level of service, the City shall use a conservative, objective, reasonable and analytical approach when preparing revenue estimates. The process shall include historical collection rates, trends, development, and probable economic changes. This approach is intended to reduce the likelihood of actual revenues falling short of budget estimates and should avoid mid-year service charges.
2. The City whenever possible, will seek outside sources of revenue, such as federal, state, and local grants, in order to leverage local dollars.
3. Estimates from grant sources will be projected only to the specific date on which the entitlement will end.
F. Pay Increases The budget shall include an amount adequate to cover pay increases based on City’s financial condition in relation to the overall budget.
G. Budget Preparation 1. The City Manager should prepare and submit the annual budget and CIP plan to the City Council according to the City of Buda Charter. Department Directors have responsibility for formulating budget proposals. New or expanded services should support City Council goals, City
5 | Page
Agenda Packet - Page 58 of 192
Manager priority direction and department goals. Departments are charged with implementing them once they are approved.
2. All competing requests for City resources will be weighted within the formal annual budget process.
3. Actions on items that come up throughout the year with significant financial impacts should be withheld until they can be made in the full context of the annual budget process and long-range plan, unless unforeseen circumstances present themselves.
4. Annually, the City will seek to obtain the Government Finance Officers Associate Distinguished Budget Presentation Award. The Budget will be presented in a way that not only meets the criteria of the award, but also clearly communicates the budget to the public.
H. Budget Management In accordance with the City Charter, the City Manager shall manage the budget after it is formally adopted by the City Council. The City Manager may further delegate levels of authority for the daily operations of the budget. Expenditures/expenses are legally adopted by the fund level. Expenditures/expenses should not exceed the adopted budget, plus subsequent changes approved by the City Council.
I. Amended Budget In order to preserve fund balances/ending balances based on projected revenues and expenditures/ expenses for the current fiscal year, City Council will approve amendments to the annual budget for all funds prior to the end of the current fiscal year when the expenses exceed $25,000 or more.
J. Performance Measurement Performance measures will be utilized and reported in department budgets. The City will maintain a measurement system that reports trends and comparisons to targets and previous year as a management tool to monitor and improve service delivery.
K. Operating Deficits The City shall take immediate corrective action if at any time during the fiscal year expenditure and revenue re-estimates are such that “net income” is lower than budgeted.
Corrective actions may include: • Deferral of capital equipment purchases • Deferral of pay-as-you go capital improvements • Expenditure reductions • Deferral of certain positions • Hiring freezes • Use of fund balance • Use of volunteers • Increase fees • Reduce work hours with subsequent reduction in pay • Eliminate positions which may require laying-off employees if there are not other vacant positions for which they are qualified.
The use of fund balance, which is a one-time revenue source, may be used to fund an annual operating deficit, only with a subsequent approval of a plan to replenish the fund balance if it is brought down
6 | Page
Agenda Packet - Page 59 of 192
below policy level.
L. Long-Range Financial Plans 1. The City shall develop and maintain a five-year Capital Improvement Project Financial Forecast for each major operating fund, in conjunction with the annual budget process.
Major operating funds are as follows: • General Fund • I & S Funds (Debt) • Water and Wastewater Utility Funds • Capital Improvement Funds
2. The forecast should enable current services and current service levels provided to be sustained over the forecast period. Operating impacts from completed capital improvement projects in the City’s five-Year CIP shall be included in the forecast. Commitments/obligations already made that require future financial resources shall also be included.
3. The forecasts should identify impact to property taxes and utility rates.
4. Major financial decisions should be made in the context of the Long-Range Plan. The forecast assesses long-term financial implications of current and proposed policies, programs, and assumptions that develop appropriate strategies to achieve the City’s goals.
The forecast will provide an understanding of available funding; evaluate financial risk; assess the likelihood that services can be sustained; assess the level at which capital investment can be made; identify future commitments and resource demands; and identify the key variables that may cause change in the level of revenue. III.
REVENUES
Design, maintain and administer a revenue system that will assure reliable, equitable, diversified and sufficient revenue stream to support desired City services.
A. Balance and Diversification in Revenue Sources The City shall strive to maintain a balanced and diversified revenue system to protect the City from fluctuations in any one source due to changes in local economic conditions, which may adversely impact that source. B. User Fees - General Fund 1. For services that benefit specific users, the City shall establish and collect fees to recover the costs of those services. Where services provide a general public benefit, the City shall recover the costs of those services through property and sales taxes.
2. At a minimum, the City will strive to cover direct costs.
3. User fees should be reviewed, at a minimum, every two to three years and adjusted to avoid sharp changes.
7 | Page
Agenda Packet - Page 60 of 192
4. Factors in setting fees shall include, but not be limited to: market and competitive pricing, effect of demand for services, and impact on users, which may result in recovering something less than direct, indirect and overhead costs.
5. The City may set a different fee for residents versus non-residents to cover costs.
6. User fees should be adopted by Council Ordinance and included in the Annual Fee Schedule.
C. User Fees - Enterprise Funds 1. Utility rates and other Enterprise Fund user fees shall be set at levels sufficient to cover operating expenditures (direct and indirect), meet debt obligations and debt service coverage, provide funding for capital improvements, and provide adequate levels of working capital.
2. The City may set a different fee for residents versus non-residents to cover costs.
3. The Five-Year Financial Plan (rate model) and proposed operating budget shall serve as the basis for rate change considerations.
4. When necessary, the Five-Year Financial Plan (rate model) will be built around small rate increases annually versus higher rate increases periodically.
D. One-Time/Unpredictable Revenue Sources 1. One-time, unpredictable revenue sources should not be used for ongoing expenses/expenditures.
E. Revenue Collection The City shall maintain high collection rates for all revenues by monitoring monthly receivables. The City shall follow an aggressive, consistent, yet reasonable approach to collecting revenues to the fullest extent allowed by law for all delinquent taxpayers and others overdue in payments to the City.
Revenues actually received will be compared to budgeted revenues by the Finance Department and any variances considered to be material will be investigated. This process will be summarized in the monthly financial report.
F. Write-Off of Uncollectible Receivables (excludes property taxes, court fines and warrant) 1. Receivables shall be considered for write-off as follows: a. State statute authorizing the release of extinguishment, in whole or in part, of any indebtedness, liability, or obligation, if applicable.
b. Accounts outstanding for 3 years, identified as uncollectible, and all attempts to collect have been taken.
2. Accounts shall be written-off annually near year-end upon approval. Delinquent accounts will be forwarded to a collection agency, and/or a credit reporting agency.
3. The write-off of uncollected accounts is a bookkeeping entry only and does not release the debtor from any debt owed to the City.
8 | Page
Agenda Packet - Page 61 of 192
IV.
EXPENDITURES
Identify services, establish appropriate service levels and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of those services.
A. Maintenance of Capital Assets Within the resources available each fiscal year, the City shall maintain capital assets and infrastructure at sufficient level to protect the City’s investment, to minimize future replacement and maintenance costs, and to maintain service levels.
B. Periodic Program/Services Reviews The City Manager and staff shall undertake periodic reviews of City programs and services for both efficiency and effectiveness. Programs or services determined to be inefficient and/or ineffective shall be recommended through the annual budget process to be reduced in scope or eliminated.
C. Purchasing All City purchases of goods and services shall be made in accordance with the City’s purchasing procedures as described in this document.
D. Property/Liability Insurance Expenses The Property/Liability Insurance Fund accounts for uninsured and deductible claims for the City’s property and liability insurance. Claims cannot be reasonably predicted and budgeted for; therefore any extensive expenditures will be presented to City Council and adjusted through budget adjustments as necessary.
V.
FUND BALANCE AND RESERVES
Maintain the fund balance and working capital of the various operating funds at levels sufficient to protect the City’s credit worthiness as well as its financial position during emergencies or economic fluctuations.
A. General Fund Unrestricted Fund Balance The City shall maintain the General Fund unrestricted fund balance equivalent to 3.5 months of recurring operating expenditures, based on current year expenditures. If the fund balance exceeds this amount, funding non-recurring expenditures in the following fiscal year may be used to draw down the balance.
B. Water/Wastewater Unreserved Working Capital The City shall maintain a working capital sufficient to provide for reserves for emergencies and revenue shortfalls. A cash equivalent of 3 months of recurring operating expenditures will be established and maintained.
C. Use of Fund Balance/Working Capital Fund balance/Working Capital shall only be used for emergencies, non-recurring expenditures/
9 | Page
Agenda Packet - Page 62 of 192
expenses or major capital purchases that cannot be accommodated through current year savings. In the event of an emergency such as violent acts of nature or any other extraordinary events that cause damages which require immediate repair or replacement, the City Manager has the authority to approve necessary costs to restore or replace destroyed or lost items, facilities, etc. These expenses will be approved by Council at the next available Council meeting subsequent to the event. Should such use reduce balances below the level established as the objective for that fund, restoration recommendations will accompany the request/decision to utilize said balances.
D. Debt Service Fund Unrestricted Fund Balance The City shall maintain the debt service fund balance of annual debt service requirements OR a fund balance reserve as required by bond ordinances, whichever is greater.
E. Employee Health Reimbursement Fund Balance The Employee Healthy Reimbursement Fund is funded through City contributions. Estimated costs shall be determined during each budget year and the contributions adjusted accordingly. There is no minimum balance for this fund.
F. Fund Balance Classification The governmental fund financial statements will present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor certain constraints on the use of the financial resources within the governmental funds. Fund Classifications and requirements must comply with GAAP and GASB accordingly on a yearly basis. The classifications used will be as follows: 1. Nonspendable: The portion of the fund balance that cannot be spent because it is either (a) not in spendable form, such as inventories and prepaid items or (b) legally or contractually required to be maintained intact. 2. Restricted: The portion of the fund balance that is restricted to specific purposes due to constraints placed on the use of resources that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitution provisions or enabling legislation. 3. Committed: The portion of the fund balance that can only be used for specific purposes, as defined by formal action (resolution) by the City Council. 4. Assigned: The portion of the fund balance that is constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. 5. Unassigned: The portion of the fund balance that has not been assigned to another fund or is not restricted, committed, or assigned to specific purposes. .
Restricted fund balances include but may not be limited to:
• Special Court Funds created by State Statute • I&S Debt Service Funds • Hotel Occupancy Tax • State and Federal Forfeitures/Seizures • Park and City-Wide Donation revenues • Unspent bond proceeds • Unspent grant funds • Unspent Capital Lease proceeds • Unspent funds received pursuant to funding, developer, and/or TxDOT agreements
10 | Page
Agenda Packet - Page 63 of 192
3. Unassigned: Is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose.
G. Commitment of Fund Balance The City Council is the City’s highest level of decision making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is an ordinance approved by the City Council at a regular City Council meeting. The ordinance must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in a subsequent period.
VI.
CAPITAL EXPENDITURES AND IMPROVEMENTS
Annually review and monitor the state of the City’s capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, funding alternatives, and availability of resources.
A. Capitalization Threshold for Tangible Capital Assets 1. Tangible capital items should be capitalized only if they have an estimated useful life of 2 years or more following the date of acquisition or significantly extend the useful life of the existing asset and cannot be consumed, unduly altered, or materially reduced in value immediately by use and have a cost of not less than $5,000 for any individual item.
2. The capitalization threshold of $5,000 will be applied to individual items rather than to a group of similar items. (i.e.: desks, chairs, etc.)
3. To maintain adequate control over non-capitalized tangible items, items costing $250 - $4,999 will be monitored, tagged, and tracked through the City financial software system. High risk items such as weapons and electronic equipment will be recorded in inventory regardless of cost.
4. Accurate inventories of all tangible items will be maintained to ensure proper stewardship of public property.
B. Five-Year Capital Improvement Plan (CIP) 1. The City shall annually prepare a five-year capital improvement plan based on the needs for capital Improvements; equipment; the status of the City infrastructure; replacement and renovation needs and potential new projects.
Capital projects are improvements or additions to the City’s physical plant/facilities/infrastructure and become a part of the City’s asset inventory. Capital projects can be further categorized into land, buildings, improvements other than buildings, and infrastructure which includes roads, sidewalks, bridges, utility lines, physical plants, etc.
Capital costs typically consist of preliminary design, final design, and construction, and may involve the acquisition of land or easements. For purposes of the CIP Plan, a Capital Improvement Project should generally exceed a cost of $20,000.
11 | Page
Agenda Packet - Page 64 of 192
2. For the most part, projects in the CIP should be based upon master plans or developer agreements. This ensures the City’s CIP, which is the embodiment of the recommendations of the individual planning studies, is responsive to the officially stated direction of the City as contained in the Comprehensive Plan and supporting master plans.
Examples of these supporting documents are: Water and Wastewater Modeling Plans, Thoroughfare Plan, Parks Master Plan, Trail Plan, Municipal Facilities Plan, etc.
3. For every project identified in the CIP, a project scope and project justification will be provided. Also, project costs shall be estimated, funding sources identified and annual operation and maintenance costs computed.
4. The City Manager is charged with recommending a Capital Improvement Plan to City Council. The CIP shall be filed and adopted in conjunction with the annual budget.
5. Annually, through the budget process and prior to year-end, projects are to be reviewed. Any expenses that carry over from one budget year to the next will require proper appropriations within the budget.
C. Infrastructure Evaluation and Replacement/Rehabilitation Water, wastewater, drainage, street lighting, streets and sidewalks, municipal facilities and other infrastructure are fundamental and essential functions for public health and safety, environmental protections and the economic well being of the City. As a result, the City’s CIP should be focused on ensuring that infrastructure is replaced as necessary to protect the City’s investment, to minimize future replacement and maintenance costs, and to maintain existing levels of service and accommodate growth.
1. High priority should be given to replacing/rehabilitating capital improvements prior to the time that they have deteriorated to the point where they are hazardous, incur high maintenance costs, negatively affect property values, or no longer serve their intended purpose.
2. The decision on whether to repair, replace or to rehabilitate an existing capital asset will be based on which alternative is most cost-effective, which would include life-cycle costing, and provides the best value to the City.
D. Replacement of Capital Assets on a Regular Schedule (Fleet,Technology) The City shall annually prepare a schedule for the replacement of its fleet and technology capital assets. Funding for the replacement of these assets will be accomplished through the annual budget process, within the resources available each fiscal year. A variety of funding options will be explored, including but not limited to cash on hand and lease/purchase, based upon a determination of what would be in the best interest of the City.
E. Capital Expenditure Financing The City recognizes there are three basic methods of financing its capital requirements: Funding from current revenues; funding from fund balance; or funding through the issuance of debt.
12 | Page
Agenda Packet - Page 65 of 192
VII.
DEBT
Establish guidelines for debt financing that will provide needed facilities, land, capital equipment and infrastructure improvements while minimizing the impact of debt payments on current and future revenues.
A. Use of Debt Financing Debt financing, to include general obligation bonds, revenue bonds, certificates of obligation, certificates of participation, lease/purchase agreements, and other obligations permitted to be issued or incurred under Texas law, shall only be used to purchase capital assets that cannot be prudently acquired from either current revenues or fund balance and to fund infrastructure improvements and additions.
B. Affordability The City shall use an objective analytical approach to determine whether it can afford to issue general purpose debt, both General Obligation and Certificates of Obligation, water/wastewater debt, sales tax revenue debt, and any other financing permitted by State law.
The process shall include an internal feasibility analysis for each long-term financing which analyzes the impact on current and future budgets, which would include the tax and utility rates. The process shall also include the benefits of the proposed projects.
The decision on whether or not to issue new debt shall be based on the benefits of the project, current conditions of the municipal bond market, and the City’s ability to “afford” new debt.
C. Types of Long-Term Debt 1. General Obligation Bonds (GO) General Obligation bonds require voter approval and are secured by a promise to levy taxes in an amount necessary to pay annual debt service. General Obligation bonds must be issued for projects that are in accordance with the wording in the bond proposition.
2. Certificates of Obligation Certificates of Obligation may be issued without voter approval to finance any public works project or capital improvement, as permitted by State law. It is the City’s policy to utilize Certificates of Obligation to finance public improvements in certain circumstances and only after determining the City’s ability to assume additional debt.
3. Revenue Bonds Revenue bonds are generally payable from a designated source of revenue. They do not require voter approval. For the City to issue new revenue bonds, revenues, as defined in the ordinance authorizing the revenue bonds in question, shall meet the bond coverage ratio as defined in the ordinance.
Annual adjustments to the City’s rate structures for Enterprise Funds will be made as necessary to
13 | Page
Agenda Packet - Page 66 of 192
maintain the coverage factor. If the City should issue CO’s for Water/Wastewater Improvements, the Water/Wastewater Funds will pay the annual debt service associated with the issue.
D. Debt Structures The City shall normally issue bonds with a life not to exceed 25 years for general obligation bonds and 30 years for revenue bonds, but in no case longer than the useful life of the asset. The City shall seek level or declining debt repayment schedules and shall seek to retire 90% of the total principal outstanding within 20 years of the year of issuance.
The City shall seek to begin making attempts to structure future debt issuances, where affordable, to a declining structure. The City will issue debt based on a fixed rate and will limit use of variable-rate debt due to the potential volatility of such instruments.
E. Debt Refunding The City’s financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the net present value savings of a particular refunding should exceed 3.0% of the refunded maturities unless:
1. Debt restructuring is necessary or
2. Bond covenant revisions are necessary to facilitate the ability to provide services or to issue additional debt or
3. The refunding is combined with a new debt issuance
F. Interest Earnings on Debt Proceeds Debt interest earnings will be limited to funding changes to the bond financed Capital Improvement Plan in compliance with the voted propositions, cost overruns on bond projects, or be applied to debt service payments on the bonds issued.
G. Bond Elections 1. Timing of general obligation bond elections shall be determined by the inventory of current authorized, unissued bonds remaining to be sold and the Five-Year Capital Improvement Plan. 2. The total dollar amount of bond election propositions recommended to the voters should typically not exceed the City’s estimated ability to issue the bonds within a 7-year period.
3. An analysis showing how the new debt combined with current debt impacts the City’s tax rate and debt capacity will accompany every future bond issue proposal.
H. Sale Process The City shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a negotiated sale. The City will utilize a negotiated process when the issue is, or contains, a refinancing that is dependent on market/interest rate timing, if the interest rate environment or market/ economic factors may affect the bond issue, or if the nature of the debt is unique and requires particular skills from the underwriters involved.
I. Underwriting Syndicates The City’s financial advisor shall attempt to involve qualified and experienced firms, which consistently submit ideas to the City and financial advisors and actively participate in the City’s competitive sale in
14 | Page
Agenda Packet - Page 67 of 192
its negotiated underwritings. In conjunction with the City, the City’s financial advisor shall recommend the structure of underwriting syndicates, which will be optimal for the type and amount of debt being issued.
J. Bond Ratings Full disclosure of operations and open lines of communications shall be maintained with the rating agencies. Credit ratings will be sought from one or more of the nationally recognized municipal bond rating agencies, as recommended by the City’s financial advisor.
The City will continually strive to maintain or increase the City’s current bond ratings by prudently managing its funds and by reviewing and monitoring financial policies, budgets, forecasts and the financial health of the City.
K. Covenant Compliance The City will comply with all covenants stated in the bond ordinance, including providing for annual disclosure information and providing for material event notices.
L. Lease/Purchase Agreements The City will use lease/purchase agreements for the acquisition of equipment when it is cost-effective and provides for attractive terms. All lease purchase agreements will be approved by City Manager or City Council depending on dollar amount as stated in the purchasing requirements.
VIII.
CASH MANAGEMENT AND INVESTMENTS
To maintain the City’s cash in such a manner so as to ensure the absolute safety of principal, to meet the liquidity needs of the City, and to achieve the highest possible yield.
A. Investment Management 1. All aspects of cash/investment management shall be designed to ensure safety and integrity of the City’s financial assets
2. Cash/Investment management activities shall be conducted in full compliance with prevailing local, state, and federal regulations.
3. The City will utilize competitive quotes from approved broker/dealers, affording no special advantage to any individual or corporate member of the financial or investment community.
4. The City will only do business with City authorized broker/dealers and/or financial institutions as approved by Council and who have executed a written certification of their review of the City’s investment guidelines.
4. The City shall design and establish policies relating to a variety of cash/investment management issues, such as the eligibility and selection of various broker/dealers, safekeeping requirements, collateral requirements, delivery versus payment requirements, weighted average maturity requirements and other such aspects of the program, which necessitate standard setting in pursuit of appropriate prudence and enhanced protection of assets
15 | Page
Agenda Packet - Page 68 of 192
5. Investments of the City shall be made with the exercise of judgment and care which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment.
B. Investment Strategy The City of Buda maintains a consolidated portfolio in which it pools its funds for investment purposes. The City’s investment program seeks to achieve safety of principal, adequate liquidity to meet cash needs, and reasonable yields commensurate with the preservation of principal and liquidity.
C. Interest Income Interest earned from investments shall be distributed to the funds from which the funds were provided.
D. Depository The City will select its official bank through a formal bidding process in order to provide the City with the most comprehensive, flexible, and effective banking services available. The City will review the financial health of the City’s depository annually to include but not be limited to earnings, assets, capital, and liquidity.
E. Collateralization of Deposits 1. The City shall have pledged collateral held at an independent third-party institution and evidenced by a written receipt.
2. The value of the pledged collateral should be marked to market monthly par or market value of the investments, whichever is greater.
3. Substitutions of collateral shall meet the requirements of the collateral agreement. Collateral shall not be released until the replacement collateral has been received.
IX.
GRANTS AND INTERGOVERNMENTAL REVENUES
The City will seek, apply for, and effectively administer federal, state and local grants, which support the City’s current priorities and policy objectives. The City should take advantage of opportunities to enhance service delivery through intergovernmental cooperation, shared revenues, and grants.
A. Grant Guidelines 1. The City shall apply and facilitate the application for only those grants that are consistent with the objectives and high priorities identified by Council and management.
2. Grant funding will be considered to leverage City funds. Inconsistent and/or fluctuating grants should not be used to fund ongoing programs and services.
3. The potential for incurring ongoing costs, to include assumptions of support for grant-funded positions from local revenues, will be considered prior to applying for a grant.
B. Grant Review Process
16 | Page
Agenda Packet - Page 69 of 192
1. A uniform grants pre-application process will be utilized to assure the City has all the information necessary to make a decision regarding a potential grant. Information to be provided should include, but not be limited to:
a. The grant being pursued and the use to which it would be placed b. The objectives or goals of the City which will be achieved through the use of the grant. c. The local match required, if any, plus the source of the local match d. The increased cost to be locally funded upon termination of the grant
2. All grant agreements will be reviewed by the appropriate City staff to ensure compliance with state, federal, and City regulations.
3. The City Manager shall approve all grant submissions and City Council shall approve all grant acceptances over $50,000.
C. Budgeting for Grant Expenditures If approved, the expenditure and associated revenue will be appropriated in the proper Fund during the budget process. If there are grant opportunities that arise during the year and are received by the City, the budget will be amended via the projections, if the City can fund the local match required.
D. Grant Termination and/or Reduced Grant Funding 1. In the event of reduced grant funding, City resources will be substituted only after all program priorities and alternatives are considered during the budget process, unless the City is obligated through the terms of the grant to maintain the positions, services, or equipment.
2. The City shall terminate grant-funded programs and associated positions when grant funds are no longer available, and it is determined that the program no longer supports City goals and/or is no longer in the best interest of the City, unless the City has obligated itself through the terms of the grant to maintain the positions, services, or equipment.
X.
FINANCIAL CONSULTANTS
The City will employ qualified financial advisors and consultants as needed in the administration and management of the City’s financial function. These areas include but are not limited to audit services, debt administration, delinquent tax collection and financial modeling.
The principal factors in the selection of these consultants will be experience/expertise, ability to perform, the services offered, references, and methodology to name a few. In no case should price be allowed to serve as the sole criterion for the selection.
A. Selection of Auditors The City shall request proposals from qualified firms, including the current auditors if their past performance has been satisfactory. The City Council shall select an independent firm of certified public accountants to perform an annual audit of the accounts and records, and render an opinion on the financial statements of the City.
17 | Page
Agenda Packet - Page 70 of 192
The City’s financial statements are reviewed and audited with an objective, impartial, and unbiased point of view. The rotation of an audit firm will be based upon the proposals received, the qualifications of the firm, and the firm’s ability to perform a quality audit.
B. Bond Counsel 1. Bond Counsel to the City has the role of an independent expert who provides an objective legal opinion concerning the issuance and sale of bonds and other debt instruments. As bond counsel are specialized attorneys who have developed necessary expertise in a broad range of practice areas, the City will always use a consultant for these services.
Generally, bonds are not marketable without an opinion of nationally recognized bond counsel stating the bonds are valid and binding obligations stating the sources of payment and security for the bonds and the bonds are exempt from Federal income taxes.
2. Due to the complexity of the City’s financial structure and the benefits that come with the history and knowledge of the City, the contract with Bond Counsel shall include a termination clause, at the discretion of the City. A contract may be renewed after a competition process in which the Council determines that continuation with the incumbent firm is in the best interest of the City.
C. Financial Advisory Services 1. The City issues various types of securities to finance its capital improvement program. Debt structuring and issuance requires a comprehensive list of services associated with municipal transactions, including but not limited to: method of sale; analysis of market conditions; size and structure of the issue; coordinating rating agency relations; evaluation of and advice on the pricing of securities, assisting with closing and debt management; calculation of debt service schedules; and advising on financial management.
As financial advisors to governmental entities have developed the necessary expertise in a broad range of services, the City will use a consultant for these services.
2. Due to the complexity of the City’s financial structure and the benefits that come with the history and knowledge of the City, the contract with the Financial Advisor shall include a termination clause at the discretion of the City. A contract may be renewed after a competition process in which the Council determines that continuation with the incumbent firm is in the best interest of the City.
D. Depository Bank Pursuant to State law, the City will select its official banking institution through a formal process based on multiple factors in order to provide the City with the most comprehensive, flexible, and with most current technological banking processes. In no way should cost be the only determining factor of selection.
18 | Page
Agenda Packet - Page 71 of 192
XI.
INTERNAL CONTROLS
Purpose:
To communicate the City's objectives and establish standards for the design and operation of the City's system of internal control. The reliability which the City can place upon its financial records is dependent upon the effectiveness of the procedures and controls which are adopted to ensure that the results of transaction processing are reflected accurately, consistently and completely in those records.
Controls must ensure also that assets are not exposed to unauthorized access and use. Management has the responsibility to establish and maintain an adequate system of internal control and to furnish to the City Council, governmental agencies, City creditors and other constituencies reliable financial information on a timely basis. An adequate system of internal control is necessary for management to discharge these responsibilities.
1. General Policy: The City Council has the fiduciary responsibility for the accounting records of the City and the ultimate responsibility for the adequacy and effectiveness of the overall system of internal control. In order to meet these responsibilities within the City's operating environment, the responsibility for a variety of controls must be delegated to the various operating entities of the City. Therefore, service and resource centers, administrative departments, auxiliary enterprises, and component units are required to:
A. Construct and maintain books, records and accounts which, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets for their respective operating units.
B. Establish and maintain a system of administrative control which promotes operational efficiency and effectiveness, and ensures adherence to City policies and procedures. These controls include, but are not limited to, budgets, schedules, job assignment and time sheets, policy and procedure manuals, organization charts, job descriptions, employee training programs and various quality controls. C. Establish and maintain an adequate system of internal accounting control sufficient to provide reasonable assurance that:
1. Transactions are executed in accordance with City management's general or specific authorization;
2. Transactions are recorded as necessary (a) to permit the preparation of financial statements in conformity with generally accepted accounting principles and the City's financial and accounting policies, and (b) to maintain accountability for City assets;
3. Access to assets is permitted only in accordance with management's general or specific authorization; and
4. The recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
19 | Page
Agenda Packet - Page 72 of 192
2. Design of Internal Control Systems: Management is responsible for establishing, maintaining and promoting effective business practices and effective internal controls. Such systems of internal control will vary from activity to activity depending upon the operating environment, including the size of the entity, its diversity of operations and the degree of centralization of financial and administrative management.
While there may be practical limitations to the implementation of some internal controls, each business function throughout the City must establish and maintain a system of controls which meets the minimum requirements as established by the City's internal control guidelines. A properly functioning system of controls improves the efficiency and effectiveness of operations, contributes to safeguarding City assets and identifies and discourages irregularities, such as questionable or illegal payments and practices, conflict of interest activities and other diversions of City assets.
3. Documentation of Internal Control Systems: Internal control systems must be documented. The nature and extent of documentation will depend upon the operating environment of each business function, and may take various forms including, but not limited to: A. Written policies and procedures.
B. Formalized reporting responsibilities within the activity and descriptions of authority and responsibility. These may be in the form of organization charts, job descriptions and/or narratives.
C. Control objectives and control techniques which contribute to the achievement of those objectives (such as those stated on internal control questionnaires).
D. Flowcharts of systems with the identification of key control points.
E. Support for decisions regarding the implementation of controls, preferably in a cost-benefit format.
4. Administration of Internal Control System: Each City employee, with support from his/her department director, manager or supervisor, or finance staff is responsible for the application of this policy and the design, development, implementation, documentation and maintenance of a system of internal controls within his/her area of responsibility. Additionally, unless otherwise specifically stated in the policy, all personnel engaged in activities affecting the adequacy of controls are subject to the provisions of this policy.
Internal control standards are issued as addenda to this policy to aid in its implementation. These standards present standard control objectives which, when met, provide reasonable assurance of maintaining an adequate system of accounting control over the various cycle activities and transactions. Comments and recommendations from any operating unit regarding this control policy and the internal control standards shall be directed to the City Manager.
5. Review and Evaluation of Internal Controls: The City Manager has the responsibility to review and measure the effectiveness of the controls established within the framework of this policy as they relate to the City's accounting, financial and operating systems. The purposes of these reviews are to:
20 | Page
Agenda Packet - Page 73 of 192
A. Ascertain the reliability and integrity of accounting, financial and operating information and the means of generating and reporting that information.
B. Ensure that systems comply with City policies, objectives, standards and procedures, and with federal, state and local laws and regulations.
C. Evaluate computer-based systems in production, in development or undergoing change; and evaluate the systems development process and computer operations.
D. Evaluate the adequacy of methods used to safeguard City assets.
6. Effective Control System An agency receiving federal and state funds must ensure that it has an effective internal control system. There are many reasons for this requirement. An effective internal control system is needed to: A. Ensure that resources are used in a manner consistent with laws, regulations, and policies;
B. Minimize the likelihood of waste, fraud, or misuse of agency resources;
C. Obtain and maintain reliable financial and program data which is essential to sound internal management and to effectively meet external reporting requirements;
D. Meet contractual and legal requirements
E. Satisfy the public's expectations that agencies receiving public funds are making every effort to adhere to sound, fundamental business practices.
7. Financial Management Functions An agency's control system is critically linked to the other six essential financial management functions and can directly affect the City's ability to effectively perform these functions. For example: A. Accurate and reliable financial reporting is an objective of an internal control structure
B. Adequate source documentation and accounting records are part of control
C. Budget control is one of management's control methods for monitoring and following up on Performance
D. Control environment, another element of the City’s internal control structure
It should be noted that while having an internal control system is required for many reasons, any internal control system, no matter how well designed, is subject to certain inherent limitations. Since management must consider the cost of a control compared to the benefit likely to be achieved with that control, circumstances could arise where problems occur because a particular control was omitted on the grounds of cost-benefit considerations.
In addition, faulty judgment or errors can occur, although it is possible that well-functioning controls will help in detecting errors. Two or more people also might collude to circumvent controls. Therefore, an internal control system is not a guarantee of success, but it can provide reasonable, although not
21 | Page
Agenda Packet - Page 74 of 192
absolute, assurance that the City's objectives can be achieved.
. 8. Control Environment The governing body and managers of an agency receiving state and federal funds must establish a sound control environment. In general, a sound control environment exists when everyone's role and responsibility in an agency for ensuring the appropriate, effective, and efficient use of agency funds is:
A. Clearly stated in specific policies and procedures (including formal position descriptions);
B. Routinely monitored and evaluated against clear performance standards; and
C. Clarified and improved upon as necessary to achieve critical control objectives.
9. Seven Key Elements of an Effective Internal Control Environment: A. Management's philosophy and operating style. The City's management should have a philosophy and operating style which has a positive overall influence on City operations. For example, the agency should act responsibly when deciding which business risks to accept, have a constructive attitude toward meeting financial reporting requirements, and emphasize the importance of meeting budget and program performance goals.
B. The City's organizational structure. The organizational structure needs to provide the overall framework for planning, directing, and controlling activities for achieving the agency's objectives. The organizational structure also needs to clearly delineate authority and responsibility within the agency and to establish appropriate lines of reporting.
C. Activities of the City Council. The City Council should actively provide guidance and oversight by engaging in activities such as:
1. Carefully selecting and performing on-going evaluation of the City manager;
2. Receiving and evaluating key information such as financial statements, program performance information, and significant contracts;
3. Fulfilling its fiduciary and accountability responsibilities; and
4. Ensuring that all board or committee members are well trained.
D. Assigning authority and responsibility. The City needs to assign authority and responsibility in a manner which ensures that everyone fully understands reporting relationships and key duties within the agency. In particular, the City should:
1. Use formal job descriptions which include specific references to duties, reporting relationships, and control related responsibilities; and
2. Have the appropriate numbers of people with the requisite skill levels relative to the size of the entity and the nature and complexity of its operations.
22 | Page
Agenda Packet - Page 75 of 192
E. Control methods for monitoring performance. The City needs to develop control methods for monitoring and following up on performance. The city should :
1. Have planning, budgeting, and reporting systems that set forth management's goals and objectives;
2. Use methods that identify the status of actual budget and program performance and compares actual to planned performance levels; and
3. Continuously seek improvements in fiscal and program performance through routinely investigating variances from expectations and, when necessary, taking timely and appropriate action to correct problems.
F. Personnel policies and practices. The City should develop and adhere to written personnel policies and procedures which comply with all laws and which result in: 1. Recruiting, hiring, and promoting competent and trustworthy people;
2. Clearly communicating performance expectations of all agency staff and evaluating staff according to these expectations; and
3. Providing the training necessary to ensure that all staff have sufficient skills to fulfill assigned duties.
G. Sensitivity to external influences. The City needs to be fully aware of external influences, such as reviews by granting agencies, and plan for and be responsive to these influences through accurate reporting on agency operations and establishment of specific internal control structure policies or procedures.
10. The Accounting System The second key element of an agency's internal control system is the accounting system. The accounting system consists of the methods and records established to identify, assemble, analyze, classify, record, and report an entity's transactions and to maintain accountability for the related assets and liabilities. An effective accounting system which contributes to fulfilling an agency's control responsibilities would give appropriate consideration to establishing methods and records that will:
A. Identify and record all valid transactions;
B. Describe on a timely basis the transactions in sufficient detail to permit the proper classification of transactions for financial reporting.
C. Determine the time period in which transactions occurred to permit recording of transactions in the proper accounting period; and
D. Present properly the transactions and related disclosures in the financial statements.
E. Measure the value of transactions in a manner that permits recording their proper monetary value in the financial statements;
11. Control Procedures Control procedures are those policies and procedures in addition to the control environment and
23 | Page
Agenda Packet - Page 76 of 192
accounting system that management has established to provide reasonable assurance that specific entity objectives will be achieved. Control procedures have various objectives and are applied at various organizational and data processing levels. They may also be integrated into specific components of the control environment and the accounting system. In general, control procedures can be viewed as being part of one of the five broad categories of procedures noted below:
A. Proper authorization of transactions and activities.
B. Segregation of duties that reduce the opportunities to allow any person to be in a position to both perpetuate and conceal errors or irregularities in the normal course of his duties. Some key duties that need to be segregated include separating:
1. The physical custody of assets from accounting for these assets;
2. The authorization of transactions from the custody of related assets; and
3. Operational responsibility from record-keeping responsibility.
C. Design and use of adequate documents and records help ensure the proper recording of transactions and events.
D. Adequate safeguards over access to, and use of, assets and records. The most important safeguard over assets and records is the use of physical precautions, such as the use of fireproof safes, safety deposit vaults, locked storerooms, etc. In addition, many types of computer information can be protected through appropriate use of passwords.
E. Independent checks on performance and proper valuation of recorded amounts. Examples of such checks include: 1. Comparing assets to records;
2. Reconciling accounts on a periodic basis; and
3. Reviewing reports that summarize detail of account balances, such as an aged trial balance of accounts receivable.
12. Compensating Controls for Small Agencies The underlying concepts of the control activities are also valid for small entities, although they may be less formal. Direct, hands-on involvement of management provides strong control over activities, lessening the need for more formal activities. Management's close involvement will often enable identification of significant variances from expectations and inaccuracies in financial or operating data. Direct knowledge of client/customer concerns and communication with granting agencies can alert management to operating or compliance problems.
Many small agencies have difficulty in obtaining an appropriate segregation of duties. Whenever possible, duties should be assigned in such a way as to achieve the necessary checks and balances. When this is not possible, direct oversight of incompatible functions by management can provide the necessary control. For example, the manager may be the only authorized check signer and sign checks only after carefully reviewing the supporting documentation, or the manager may review bank reconciliations or require that monthly bank statements are delivered directly to the manager unopened.
24 | Page
Agenda Packet - Page 77 of 192
XII.
PURCHASING
PURPOSE
The purposes of the regulation are to standardize the purchasing procedure of the City of Buda, thereby securing for the City the advantages of a uniform purchasing policy in an effort to both save money and increase public confidence in the procedures for municipal purchasing.
Additionally it is to promote the fair and equitable treatment of all suppliers of goods and services and to clearly set forth the duties and responsibilities of the department heads and the purchasing agent.
As the chief administrative officer for the City, the City Manager is responsible for the administrative affairs of the City. The City Manager has delegated the purchasing responsibility within the guidelines established in this manual to the Department Directors. Each Department Director is authorized to execute orders on behalf of the City within these policy guidelines. Any interpretation of these guidelines necessary for the effective operation of the purchasing function will be made by the City Manager or a designee.
The City’s purchasing categories are outlined below.
A. CREDIT CARDS & CHARGE ACCOUNTS
Credit Cards and Charge Accounts are to be used for purchasing small dollar (less than $1,000), high volume items, and for official City travel. Credit Cards and Charge Accounts are for official City business purposes only and shall not be used for any personal transactions. Use of the Credit Card to make purchases of capitalized equipment is prohibited. Improper use of a Credit Card or Charge Account may result in disciplinary action, up to and including termination of employment.
All credit cardholders must be approved by the Finance Manager, and City Manager.
All open credit accounts must be approved by the Finance Manager.
Credit Cardholder responsibilities:
1. All purchase transactions processed against the Credit Card or Charge Account must be made by the credit cardholder.
2. The Cardholder or Charge Account Holder shall forward all documentation of all purchases to the Finance Department within 2 business days of the purchase.
3. The cardholder shall be responsible to maintain the security of the card and shall be personally liable for any charges that are assessed against the card for other than official City business conducted in accordance with the policies contained herein.
4. The cardholder shall immediately advise the Finance Manager of any lost or stolen cards or any suspicion of identity theft related to the card.
5. Credit Card purchase approvals: The department manager or department director must review all
25 | Page
Agenda Packet - Page 78 of 192
charge documentation and approve all cardholder statements. Each statement cycle a copy of the statement will be provided to each cardholder to review and approve.
Credit Card dollar limitations:
1. The Credit Card and/or Charge Accounts are to be used for purchases of goods or certain business services under $1,000 without a Purchase Requisition or Purchase Order, except as provided in the next paragraph. This means if the total payment, including freight, to be made to a vendor is $1,000 or more, a purchase order must be used.
2. Credit Cards may be used where vendors will not accept a purchase order or there are exceptional circumstances for the purchase. The Credit Card holder must have written approval from the City Manager or his designee for the purchase prior to placing an order exceeding the $1,000 limit.
Suspension/Termination of Credit Cards: Cardholders who do not abide by City policies will have their Credit Card privileges suspended and may face further disciplinary action, up to and including termination and prosecution by the City. The Credit Card shall be immediately canceled when the cardholder’s employment with the City is terminated.
Reinstatement of Credit Card: If a Credit Card is cancelled or suspended for misuse, Credit Card privileges can be reinstated after a one year period. There will be mandatory re-training prior to reinstatement of the Credit Card privileges. The reinstatement will be probationary for a six month period, on terms to be established by the City Manager.
B. PURCHASES OF $3,000 OR LESS BUT GREATER THAN $1,000
In addition to Credit Card expenditures, individual department directors shall have discretionary spending authority up to $3,000. When a Department Director requires expenditures between $1,001 to $3,000, the Department Director will obtain three informal quotes (verbal) on goods or services with a total cost within the $1,001 to $3,000 limits unless otherwise excepted in this manual. These purchases will be accomplished by means of a Departmental Purchase Order and Telephone/Written Quote Form. City employees are prohibited from making “separate, sequential, or component” purchases to avoid purchase order requirements”. Competitive quotations or bidding are not required. Department Purchase Orders shall be forwarded to Finance within 2 business days of the ordering of the goods.
C. PURCHASES OF $15,000 OR LESS BUT GREATER THAN $3,000 When a Department Director seeks to expend sums between $3,001 and $15,000, the Department Director will obtain three formal quotes (email or faxed) for such goods or services except as provided in this manual. The quotes will be obtained by using the City of Buda Quote Request Form. This form will be faxed or email to each vendor that the department is requesting a quote from. At least one HUB's must be contacted on a rotating basis for each purchase in this range, and 10-13% of business awarded. Please refer to www.window.state.tx.us/procurement for a list of the current HUB vendors for the commodity that is being purchased. If the list does not identify a HUB in Hays County, the City is exempt from this requirement. All such expenditures must be approved by the Finance Manager and City Manager.
26 | Page
Agenda Packet - Page 79 of 192
D. PURCHASES OF $50,000 OR LESS BUT GREATER THAN $15,000
When a Department Director seeks to expend sums between $15,001 and $50,000, the Department Director will obtain three formal quotes (email or faxed) for such goods or services except as provided in this manual. The quotes will be obtained by using the City of Buda Quote Request Form. This form will be faxed or email to each vendor that the department is requesting a quote from. The City requires a good faith effort for HUB participation. The City’s goal is 10% participation to include; HUB’s (Historically Underutilized Businesses), MBE’s (Minority Business Enterprises), DBE’s (Disadvantaged Business Enterprises), and SMB’s (Small Medium Businesses). Please refer to a list of current vendors at www.window.state.tx.us/procurement for the commodity that is being purchased. If the list does not identify a HUB in Hays County, the City is exempt from this requirement. All such expenditures must be approved by the Finance Manager and the City Manager.
MINOR CONSTRUCTION PROJECTS: Minor construction projects are construction activities under $50,000. The Project Manager for all minor construction projects for all City facilities will be determined by the City Manager (see section 2 below).
Change Orders: After any contract is signed, if changes are necessary in the scope of work, the contract price, or the contract time, a change order must be prepared on a City approved form for execution by the Contractor and the City.
. If a change order involves a decrease or an increase of $50,000 or less, the governing body may grant general authority to an administrative official of the municipality to approve the change orders.
. The original contract price may not be increased under this section by more than 25 percent. The original contract price may not be decreased under the Local Government Code by more than 25 percent without the consent of the contractor.
Payment Requisitions: Payment requisitions must be prepared, properly completed with all necessary signatures except the Finance Department and certified that all information contained on the Payment Requisition is correct including certification that the payment request is in compliance with the contract.
• PROFESSIONAL SERVICES: For professional services involving an anticipated fee of $50,000 or less, the requesting Department Director will create a Professional Services Contract for legal review.
E. PURCHASES OVER $50,000
The Texas Local Government Code requires competitive bidding or proposals for city purchases
27 | Page
Agenda Packet - Page 80 of 192
exceeding $50,000 in amount, with very few exceptions. City employees are prohibited from making "separate, sequential, or component purchases to avoid the competitive bidding requirements". A violation of these prohibitions is a Class B misdemeanor ($1,000 fine and/or 180 days in jail), and conviction results in immediate removal from office or employment and ineligibility for other public office or employment for four years after the date of conviction (Local Gov’t. Code Section 271.029 and 271.030).
Purchases must be made through formal, written, sealed competitive bids or proposals. Departments are prohibited from splitting purchases to avoid the formal bid requirement.
City Council approval is required for the award of contracts for all purchases for goods and services of over $50,000. If the formal bid process is used and the low bid is $50,000 or below, the City Manager has the authority to execute the contract award.
• HIGH TECHNOLOGY PURCHASES: High technology purchases in excess of $50,000 must be made through formal, written, sealed proposals. Departments are prohibited from splitting purchases to avoid the formal proposal requirement. State law requires that the relative importance of price and other evaluation factors be specified in the RFP. All RFP’s for high technology purchases must be approved by the Department Director, IT Committee, Legal, and the City Manager or his designee prior to advertisement of the RFP.
• PROFESSIONAL SERVICES: "Professional Services" are services which involve mental or intellectual skills, usually accompanied by formal certification or licensing by a state agency, such as accounting, architecture, engineering, medicine, planning, economics, law, financial advisory services and scientific or laboratory consulting services.
State law prohibits the purchase of professional services by competitive bidding. User departments must select professional service consultants on the basis of demonstrated competence and qualifications, and must negotiate fees on the basis of what is fair and reasonable for the type of services, rather than on a "low bid" basis. Except for architects and engineers, discussed below, both price and qualifications can be considered in selecting consultants.
For services involving an anticipated fee of more than $50,000, use the formal Request-For-Proposals ("RFP") procedure in coordination with the Finance Manager. Deviations from the RFP requirement must be based on unusual circumstances, and a written waiver must be approved by the City Manager.
Architects/Engineers:
In the case of architectural or engineering services a two step process must be followed. The first step is initial selection of the consultant based on demonstrated competence and qualifications (and not considering price); and the second step involves negotiation of a fee with the selected consultant. If fee negotiations are not successful, then fee negotiations with the second most qualified consultant may be undertaken, and so forth. It is important to keep in mind that price may not be considered in the initial selection of an engineer or architect.
28 | Page
Agenda Packet - Page 81 of 192
The RFP and calendar (a schedule for the RFP & project) must be approved by the City Administrator and the Legal Department prior to issuance of the RFP. If the amount payable under the contract exceeds $50,000, award of the contract will require City Council approval.
Contract amendments: All contract amendments must be approved by the City Council.
Change in Services: The consultant must receive written approval from the City prior to initiating any additional work. Additional services for which compensation exceeds $50,000 of current contract amount must be approved by the City Council. All change of services for which compensation is less than $50,000 may be approved by the City Manager.
• CONSTRUCTION PROJECTS Construction projects include construction activities for buildings, streets, and utility system improvements including renovations and demolitions. The City Manager will designate a Project Manager for each construction project. These projects sometimes involve the acquisition by the City of real property, right-of-way or easements, which must be completed before the contractor enters the project area. In addition, state law requires most public works projects to be designed and overseen by a registered professional engineer or architect, who can be either in house (Engineering Department) or a contracted consultant.
Technical specifications/plans and supplementary conditions are developed by the Architect/ Engineer.
a. Asbestos Abatement: If the project involves renovation or demolition work on an existing City building, state law requires an asbestos abatement survey to be conducted by a state licensed person, and material samples must be collected and submitted for analysis at a state certified laboratory. If asbestos is found, the Project Manager must contact the Engineering Department for additional information regarding asbestos abatement. All demolition projects require notification to the Texas Department of Health regardless of whether asbestos is present.
b. Elimination of Architectural Barriers: If the project involves construction of a building with an estimated construction cost of $50,000 or more, the City is required to submit all plans and specifications for the construction or renovation to the Texas Department of Licensing and Regulation for review for removal of barriers to persons with disabilities.
c. Change Orders: After the contract is signed, if changes are necessary in the scope of work, the contract price, or the contract time, the Architect/Engineer advises the Project Manager. With the Project Manager's approval, the Architect/ Engineer prepares a change order on a City approved form in triplicate originals for execution by the Contractor, the City, and the Architect/Engineer.
The net amount of all change orders cannot increase the original contract price by more than 25%. The net amount of all change orders cannot decrease the original contract price by more than 25% without the Contractor's consent.
Change orders involving an increase or decrease of less than $50,000 or less will be executed by the City Manager.
29 | Page
Agenda Packet - Page 82 of 192
Change orders involving an increase of more than $50,000 must be approved by City Council.
Payment Requisition: It is the responsibility of the Project Manager and the Engineer/Architect to ensure that the correct Payment Requisition forms are properly completed with all necessary signatures except the Finance Department, and/or the City Manager, which are obtained after the completed and signed Payment Requisition, is sent to the Finance Department. The City Manager’s signature is only required on the final payment.
Final Payments: The City Manager executes all Final Payment Requisitions.
EXEMPT PURCHASING FUNCTIONS
State law provides a few exemptions from competitive bidding. Such examples include:
• The purchase of land or rights-of-ways;
• Personal or professional services, such as engineering, architectural, or planning services;
• Property bought at an auction;
• Property bought at a going-out-of-business sales; and
• Property bought from another political subdivision or state or federal government.
• In case of public calamity, where it becomes necessary to act at once to provide relief for local citizens or to preserve or protect the public health;
• In case of unforeseen damage to public property, machinery, or equipment, where immediate repair is necessary;
• Procurement necessary to preserve or protect public health or safety of the City’s residents;
• Procurement for work that is performed and paid for by the day as the work progresses;
• Purchase of land or right-of-way; or
• Other matters as set forth in Section 252.022 of the Texas Local Gov’t. Code.
The application of exemptions from competitive bidding requirements for purchases in excess of $25,000 must be approved in each case by the City Manager and the City Council.
30 | Page
Agenda Packet - Page 83 of 192
EMERGENCY PURCHASES
Emergency purchases are those purchases caused by an unforeseen and dangerous situation that requires immediate action to preserve the health and safety of people or property in the City. When emergency purchases are made, the user department must make the purchase at the best possible price considering all existing circumstances and the necessity for prompt action. The Finance Department will issue a verbal approval upon request when an emergency occurs which must be followed-up with a purchase order as soon as time permits. The user department must submit a purchase requisition within 48 hours after the emergency purchase is made.
Emergency purchase orders in excess of $50,000 must be authorized by the City Manager and Finance Manager and ratified by the City Council.
SOLE SOURCE PURCHASES
State laws allow for a limited exemption from competitive bidding for the purchase of goods where the functional requirements of the City can be satisfied by only one source. This applies to: purchases where competition is precluded because of:
the existence of patents, copyrights, secret processes or natural monopolies;
the purchase of films, manuscripts or books; purchases of electric power, gas, water, and other utility services;
the purchase of captive replacement parts or components for equipment; and
other items as specified in Section 252.022(a)(7) of the Texas Local Gov’t. Code.
A product is eligible for sole source purchase only when there is a significant functional difference between the product and other similar products on the market, and when the item is available only from one vendor. The following are not sufficient justifications for a sole source purchase:
A product is made by only one manufacturer, if products from other manufacturers are available that perform a similar function.
A particular name brand of product is preferred over other brands.
Only one local vendor offers a products, if other vendors who offer the product can meet the City's needs.
Sole source purchases in excess of $50,000 must be approved by the City Manager and the City Council prior to the purchase. When City Council approval is necessary, a detailed explanation of the sole source basis for the purchase must be included by the user department on the agenda request form.
RENTAL AND LEASE EQUIPMENT
All lease agreements are accomplished by sealed bids/proposals if the amount of the lease is expected to exceed $50,000 over the term of the lease agreement. A lease of equipment is subject to the requirements for competition that apply to purchases. Rental or lease equipment agreements will be processed on a
31 | Page
Agenda Packet - Page 84 of 192
standard purchase order.
The user department must identify the source of funds to cover payments of lease charges for the entire period of the lease.
BLANKET PURCHASE ORDERS
The user department shall submit a purchase order for a blanket purchase order approval for an amount of estimated annual recurring expenditures. For example, a department would set up a blanket purchase order for vendors from whom they regularly purchase needed supplies. Examples might include office supplies, equipment parts, lubricants, fuel, and so forth.
INTERGOVERNMENTAL PURCHASES
It is the policy of the City to facilitate joint purchasing arrangements on both an inter-governmental and intra-city basis. The Finance Manager will work with other governmental entities to take advantage of the benefits of joint purchasing arrangements. In addition, the Finance Manager will utilize various cooperative programs available to the City.
COMPUTER HARDWARE AND SOFTWARE PURCHASES
The City has adopted the following policy for the purchase of computer hardware and software.
Any City staff employee can make purchases for computer supplies/equipment less than $100 (consumable items, such as diskettes, CD’s, DVD’s, ink cartridges, mice.)
Purchases of computer supplies/equipment $100.00 to $999.99 must have the approval of the Department Director and the Finance Manager.
Purchase of computer supplies/equipment $1,000 - $50,000 must be approved by the Department Director, the Finance Manager, and the IT Committee.
If cost is estimated to exceed $50,000 the RFP policy applies.
All original program diskettes/CD’s shall be kept by the City Secretary for retention filing at the Records Storage Center. The original software license is kept by the user department for its files.
CITY COUNCIL AUTHORIZATION
Contracts for the purchase of goods and services involving an expenditure in excess of $50,000 require the approval of the City Council, whether or not the purchase has been obtained through a competitive bidding or proposals procedure. The Department Director is responsible for timely processing of City Council Agenda Request forms to the City Manager when Council approval is necessary for a purchase.
32 | Page
Agenda Packet - Page 85 of 192
BUYING LOCALLY
The City encourages purchases from vendors in Buda when the needs of the City and the requirements for competition in this manual can be met. State law, however, does not permit purchases to be limited to Buda vendors when competition is afforded by out-of-town vendors who can meet the City's delivery and/or service requirements.
In purchasing any real property or personal property that is not affixed to real property, if the City receives one or more bids from local bidders, and the bids are within five percent of the lowest responsible bid received by the City from a nonresident bidder, City may award the contract to the lowest responsible bidder who is a local bidder, if the City determines in writing that the local bidder offers the City the best combination of contract price and additional economic development opportunities for the City created by the contract award including the employment of local residents, and increased tax revenues to the city.
HISTORICALLY UNDERUTILIZED BUSINESSES (HUB'S)
The City is taking the following actions to assist Historically Underutilized Businesses (HUB's) in doing business with the City.
The Finance Department insures that HUB's are given a fair and equal opportunity to bid on City contracts.
The Finance Department ensures that, before the City makes an expenditure of more than $3,000 but less than $50,000, at least one HUB is contacted on a rotating basis, based on information provided by the Texas Building and Procurement Commission.
It is the City’s intent that these actions will promote participation of HUB's within the City.
FIXED ASSETS
The City is responsible for keeping records of all of its fixed assets. All new assets which have an original cost of $5,000 or more and a three year life span are fixed assets and will be added to the fixed assets records. Fixed assets are charged to the general ledger account code XXXXX. All duties and responsibilities of the fixed assets inventory records are supervised by the Finance Department. Effort by the directors and department heads throughout the City is necessary if the system is to work; however, this effort is centrally organized, monitored, and reported by the Finance Department staff.
SURPLUS
All surplus computer hardware and software must be returned to the Finance Manager. For all other surplus goods, contact the Finance Department for disposal either by on-line auction, or City Auction.
TRAVEL
All travel must be approved by the Finance Manager and the City Manager, using the attached Travel
33 | Page
Agenda Packet - Page 86 of 192
Request Form. All travel requests shall be made within 2 weeks of the travel date(s). The mileage rate to be reimbursed for all mileage will be the same rate of reimbursement used by the Federal Government.
RECYCLED PRODUCTS
The Finance Department encourages all user departments to assist in the purchase of recycled products and supports the entire process of recycling.
DOCUMENTS
REQUISITIONS: The Requisition requests authorization for the User Department to enter into a contract with a vendor to purchase goods and/or services for the user department and to charge the appropriate department or project budget once all approvals have been obtained.
THE PURCHASE ORDER: The primary purchasing document used by the City to secure supplies and/or equipment is the Purchase Order ("PO"). The PO is a binding written agreement between the City and a vendor obligating the City to pay for specified goods or services when delivered in accordance with the purchase order terms. PO’s will be issued by the Finance Department only. NO ORDER IS BINDING UPON THE CITY UNTIL A PURCHASE ORDER HAS BEEN ISSUED. NO EMPLOYEE SHALL CONSENT TO AN ORDER ON THE "CONFIRMING" BASIS BEFORE A PURCHASE ORDER HAS BEEN ISSUED.
RECEIPTS: The user department is required to process a Material Receiving Report for complete delivery of an order prior to payment. This will be completed on the Requisition.
TELEPHONE/WRITTEN QUOTE FORM: The user department is required to complete the telephone/written quote form for all purchases greater than $1,000. The telephone/written quote form must be forwarded to the Finance Department for processing.
QUOTE REQUEST FORM: The user department is required to utilize the quote request form for all purchases greater than $3,000. The quote request form will ensure that each vendor receives the same information in which to base their quote on. The responses from the vendor along with the telephone/written quote form must be forwarded to the Finance Department for processing.
TRANSFERS OF FUNDS: In the event that the department director needs to transfer funds between line items the transfers of funds form must be completed.
FIXED ASSET ACTIVITY FORM: The Fixed Asset Activity Form must be completed for each fixed asset that is added, deleted or transferred. A fixed asset is a cost of $2,500 or greater at the time of purchase.
TRAVEL AUTHORIZATION FORM: All travel must be approved using the attached form. It must be submitted within 2 weeks of the travel date(s).
34 | Page
Agenda Packet - Page 87 of 192
XIII.
INVESTMENTS
PURPOSE
A city must adopt a written investment policy by ordinance or resolution. TEX. GOV’T CODE §2256.005(a). Therefore, regardless of a city’s population, it must have a written investment policy if it has any cash or bank investments. A formal policy protects not only the cash assets of the city, but also the elected and finance management officials.
1. INVESTMENT IN PUBLIC FUNDS A city may invest its public funds, but only if the city complies with Chapter 2256 of the Texas Government Code, the Public Funds Investment Act (Act).
A. Requirements of the Act Before a city may invest its public funds, the Act generally requires the following: 1. A city must adopt a written investment policy. 2. A city may only invest its funds in investments authorized under its written investment policy. 3. Authorized investments must come from the list of proper investments under the Act. 4. An official from the city must complete training regarding the requirements of the Act.
B. Investment Policy Requirement An investment policy must contain a statement emphasizing safety and liquidity. TEX. GOV’T CODE §2256.005(b)(2). The policy must also include a list of authorized investments and the permitted maximum maturity of any individual investment, as well as the maximum weighted average maturity (WAM) of funds. TEX. GOV’T CODE §2256.005(b)(4)(a). The policy must also include the method used by the investing entity to monitor the market price of investments acquired.
The primary objectives, which should direct any investment strategy, are safety and liquidity. Safety is the most important objective because public officials have a fiduciary responsibility to manage and maintain taxpayer funds. The Act requires city councils to invest public funds under their control with the same prudence and discretion as such entities would manage their own affairs.
Liquidity, the ability to sell or dispose of an investment, is equally important. Invested funds must be readily available if the need for cash arises and requires the city to liquidate the investment before maturity.
Yield refers to the rate of return received on a particular investment. Yield or income derived from an investment is important, particularly to a city grappling with declining or stagnant revenues or tax base. However, 1995 amendments to the Act significantly revised the ranking of investment objectives and put yield in last place. The first priority for consideration is the suitability of the investment to the overall cash flow and financial requirements of the entity.
The Act requires that the governing body of an investing entity review its investment policy at least once a year. TEX. GOV’T CODE §2256.005(e). Moreover, the governing body must take formal action stating that the policy and strategy have been reviewed. Any changes to either the policy or strategy must be recorded in the resolution and the investment policy. Changed policies should be sent to all brokers, pools, and advisors.
35 | Page
Agenda Packet - Page 88 of 192
The investing entity must also designate by ordinance or resolution the employee or investment officer(s) who will be responsible for the investment of its funds. TEX. GOV’T CODE §2256.005(f). The policy also should refer to training seminars conducted by independent sources, such as the Texas Municipal League.
2. TRAINING REQUIREMENT UNDER THE INVESTMENT ACT The treasurer, the chief financial officer (if the treasurer is not the chief financial officer), and the investment officer of a local government must attend at least one training session in investment laws within 12 months after taking office. TEX. GOV’T CODE §2256.008.
The Act is written in a way that requires all cities to appoint someone to one of these positions in order to receive the training. On a continuing basis, the investment training sessions must be attended at least once every two-year period for at least ten hours of instruction. The entity that provides training must report to the state comptroller a list of the governmental entities that received training. Further, auditors and credit-rating agencies are increasingly paying attention to whether a city is up-to-date on its required training. The Texas Municipal League offers training, as do other entities. City officials may check for upcoming Public Funds Investment workshops under the “Training” tab on the TML Web site at www.tml.org.
The Public Funds Investment Act training requirement makes no exception or allowance for cities that don’t invest, invest very little, or invest only in time deposits. TEX. GOV’T CODE §2256.008.
Certificates of deposit are considered investments under the Act, meaning that their purchase is not proper unless the city has adopted a written investment policy authorizing their use. TEX. GOV’T CODE §2256.010.
A. Legal Investment Tools Allowed According to the Act The Act limits the types of investments that the City may authorize under its investment policy. Essentially, an investment must be legal under the Act, and included in the City’s investment policy, before the city may use that investment.
Following are the common legal investments under the Act (there are some additional legal investments that apply only to certain cities or entities):
1. Governmental Obligations. United States and State of Texas obligations, such as bonds, are legal investments. So are obligations of local governments, provided the obligations are “A” rated. Mortgage-backed obligations are not legal, however. TEX. GOV’T CODE §2256.009.
2. Certificates of Deposit (CDs). CDs are a legal investment provided they are issued by a bank with its main office or a branch office in Texas. TEX. GOV’T CODE §2256.010. CDs must be collateralized (secured) for amounts greater than FDIC insurance ($250,000).
3. Repurchase Agreements. Certain fully-collateralized repurchase agreements are legal investments. TEX. GOV’T CODE §2256.011.
36 | Page
Agenda Packet - Page 89 of 192
4. Securities Lending Programs. TEX. GOV’T CODE §2256.0115.
5. Banker’s Acceptances. TEX. GOV’T CODE §2256.012.
6. Commercial Paper. Commercial paper is a legal investment provided it has a maturity date of 270 days or less and is rated at least “A-1” or “P-1” by at least two credit rating agencies. TEX. GOV’T CODE §2256.013.
7. Certain Mutual Funds. TEX. GOV’T CODE §2256.014. (See below for details about legal mutual funds.)
8. Guaranteed Investment Contracts. Guaranteed investment contracts are legal investments if they have a defined termination date, are fully secured, and are pledged to the city. TEX. GOV’T CODE §2256.015.
9. Investment Pools. Investment pools are legal investment vehicles if: (a) the city council passes an ordinance or resolution authorizing investment pools; (b) the investment officer of the city receives a detailed prospectus from the pool; (c) the pool makes detailed periodic reports to the city; and (d) the pool is continuously rated “AAA” or “AAA-m.” TEX. GOV’T CODE §2256.016.
10. Stocks, also known as equities, are not listed among the legal investments under the Act.
11. Mutual Funds. Whether a city can invest in a mutual fund and how much depends on the type of mutual fund in question. An outline of the law for each type of permissible mutual fund follows, but it is recommended that the investment officer read the statute in question before making the investment: A. A city may invest in no-load money market mutual funds only if all the following are true: 1. The fund is registered and regulated by the Securities and Exchange Commission (SEC); 2. The fund provides a certain type of prospectus; 3. The fund has a dollar-weighted average stated maturity of 90 days or fewer; and 4. The fund includes in its investment objectives the maintenance of a stable net asset value of one dollar per share.
A. A city may invest in no-load mutual funds (that is, non-money market) only if all the following are true:
1.The fund is registered with the SEC; 2. The fund has an average weighted maturity of less than two years; 3. The fund invests exclusively in obligations already approved elsewhere in the Public Funds Investment Act (thus excluding most stock funds); 4.The fund is continuously rated as to investment quality by at least one
37 | Page
Agenda Packet - Page 90 of 192
nationally recognized investment rating firm of not less than AAA or its equivalent; 5. The city invests no more than 15 percent of its eligible funds in the mutual fund (that is, excluding city’s bond and debt funds); 6. The city does not invest its bond or debt service funds in this type of fund; and 7. City investments do not exceed ten percent of the value of the fund. TEX. GOV’T CODE § 2256.014.
The Public Funds Investment Act does not permit investment of any city funds until the city adopts a written investment policy that authorizes each type of investment in question. A written investment policy that does not authorize mutual funds would thus exclude their use, despite state law.
B. CONSEQUENCE of FAILURE to COMPLY with the PULIC FUNDS INVESTMENT ACT TRAINING REQUIREMENTS Though the Act contains no penalty provision, auditors and credit-rating agencies are increasingly knowledgeable about the Act’s requirements. Failure to obtain the necessary training could result in negative marks on the city’s audit or a downgrade in a city’s credit rating, which could affect municipal borrowing.
XIV.
CAPITAL ASSETS POLICY AND DEPRECIATION GUIDANCE BASED ON GASB STATEMENT 34
Purpose This policy establishes the minimum cost value (capitalization amount) that shall be used to determine the capital assets, including infrastructure assets that are to be recorded in the City of Buda’s annual financial statements in order to comply with the requirements of GASB Statement No. 34.
This policy also addresses other considerations for recording and depreciating fixed assets in order to comply with the provisions of GASB Statement No. 34.
1. Asset Classification Land Land improvements and infrastructure Buildings Equipment/Machinery/vehicles Intangible Assets
2. Capital Asset Definition A Capital asset is a piece of property that meets all of the following requirements: 1. The asset is tangible and complete 2. The asset is used in the operation of the City’s activities 3. The asset has a useful life of longer than the current year 4. The asset is of significant value
38 | Page
Agenda Packet - Page 91 of 192
3. Capitalization Method All capital assets are recorded at historical cost as of the date acquired or constructed. If historical cost information is not available, assets are recorded at estimated historical cost by calculating current replacement cost and deflating the cost using the appropriate price-level index.
4. Capitalization Thresholds (GASB Governmental Entities with Revenues between $10 and $100 million) The City of Buda establishes the following minimum capitalization thresholds for capitalizing fixed assets with a useful life of more than two (2) years: Tracking and Inventory Capitalize and depreciate Land Capitalize only Land Improvement $5,000 Building $5,000 Building Improvements $5,000 Construction in Progress Capitalize only Machinery and Equipment $5,000 Vehicle $5,000 Infrastructure $5,000
Detailed records shall be maintained for all fixed assets above the established thresholds. In addition, items used as one system which total $5,000 or more in aggregate should also be capitalized. Using these guidelines, items costing less than $5,000 would not be recorded as fixed assets (i.e., capitalized), but their cost would be recorded as an expenditure under minor equipment, supplies, etc. Inventory records may be established and maintained for control or insurance purposes for items under $5,000, but the cost for items under $5,000 should not be included in the amount reported in the General Fixed Assets.
5. Depreciation and Useful Life Depreciation Method – Straight Line Depreciation is used by the City. The total amount depreciated can never exceed the asset’s historic cost less salvage value.
The Finance Manager will assign an estimated useful life to all assets for the purposes of recording depreciation. Asset lives will be adjusted as necessary depending on the present condition and use of the asset and based on how long the asset is expected to meet current service demands. Adjustments should be properly documented. Depreciation is recorded based on the straight line method using actual month convention and depreciated down to the assets salvage value.
Depreciation will be calculated utilizing the ‘half-year schedule. Under this schedule an asset is treated as though it were placed in service or disposed of the first day of the seventh month of the fiscal year. One half of a full year’s depreciation is allowed for the asset in its first year placed in service, regardless of when it was actually placed in service during that year.
A. Infrastructure Assets In accordance with GASB Statement 34, the City records, at minimum, “major” infrastructure assets as defined in Statement 34 that were acquired, constructed or significantly reconstructed, or that received significant improvements after June 30, 1980. Other infrastructure assets may be capitalized as deemed appropriate. The City does not use the “modified approach” to record infrastructure.
39 | Page
Agenda Packet - Page 92 of 192
B. Other Assets Detailed records are maintained for all items below the capitalization thresholds that should be safeguarded from loss. These items are part of the annual physical inventory discussed below and would normally have a cost between $250 and $4,999. These items include all electronic equipment, tools, police equipment and all other assets that fall below the established thresholds as specified by the Finance Manager. High risk items such as weapons and electronic equipment will be recorded in inventory regardless of cost.
C. Depreciation and Useful Life The City’s Finance Manager will assign an estimated useful life to all assets for the purposes of recording depreciation based on GAAP and GASB requirements. Asset lives will be adjusted as necessary depending on the present condition and use of the asset and based on how long the asset is expected to meet current service demands. Adjustments should be properly documented. Depreciation is recorded based on the straight line method using actual month convention and depreciated down to the assets salvage value.
Depreciation will be calculated utilizing the ‘half-year schedule. Under this schedule an asset is treated as though it were placed in service or disposed of the first day of the seventh month of the fiscal year. One half of a full year’s depreciation is allowed for the asset in its first year placed in service, regardless of when it was actually placed in service during that year.
6. Disposition of Assets When capital assets are sold or otherwise disposed of, the inventory of Capital Assets should be relieved of the cost of the asset and the associated accumulated depreciation. Assets will be removed on an annual basis in conjunction with the annual update. The appropriate depreciation will be taken for the year of the disposal.
7. Safeguarding and Controlling Fixed Assets All machinery and equipment, vehicles and furniture is assigned an asset number and identified with a fixed asset tag. As fixed assets are purchased or disposed of, the department head in custody of that asset is responsible for preparing a fixed asset data sheet, which is then forwarded to the finance office to ensure proper recording. A physical inventory will be taken periodically and compared to the physical inventory records. The results are forwarded to the finance office where appropriate adjustments will be made to the fixed asset records.
XV.
CASH MANAGEMENT
Purpose Implementing internal controls is important in the area of cash management because of the diverse nature of the processes involved, i.e., billings, collections, deposits, and disbursement processes, as well as the fragmented oversight responsibilities generally associated with these processes. Some of the other major factors, which impose a need for a consistent application of sound internal controls, are: a. The prevalence of a high turnover rate of operating personnel and supervisors in cash management functions;
40 | Page
Agenda Packet - Page 93 of 192
b. The assignment of cash handling responsibilities to personnel with limited fiscal experience or understanding; c. The fragmentation of billing and cash handling functions which makes monitoring the whole process difficult; and d. The inherent risk of loss, or opportunity for personal gain, created by the nature of cash transactions.
1. Internal Controls Policy It is the policy of the City of Buda to implement internal controls in the area of cash management to minimize the cost of the use of money to the City. The City's accounting and administrative controls must also provide reasonable assurance that all City assets, including funds, are safeguarded against waste, loss, unauthorized use, or misappropriation.
While the need for internal controls may seem burdensome or restrictive, their value should be obvious. It is the responsibility of financial managers to interpret the value of internal controls for other managers and employees. They should also assist in establishing internal controls that may need to be tailored to specific situations.
However, the costs and benefits of proposed controls for unusual situations should be carefully evaluated and the costs should not normally exceed the benefits likely to be derived. On the other hand, such evaluations should not be mistakenly used as a justification for relaxing controls, or accepting an increased risk of loss to the City, based strictly on cost.
2. Responsibilities Internal controls over cash management are needed at all levels of the organization that handle cash and/or cash equivalents, i.e., coupons, credit card slips, etc. Both program managers and financial managers are accountable for cash under their control.
However, the City’s finance manager must provide guidance to all employees who have cash management responsibilities; he/she also bears ultimate responsibility for internal controls over cash collections, disbursements, and holdings which are accounted for by his/her operations.
Therefore, responsibilities of cash management officers, cashiers, certifying officers, and other accountable personnel to establish and maintain controls should be formally delegated by the City Council.
3. Internal Control Standards Cash management internal controls represent an application of common sense and prudent conduct to the use and proper safeguarding of City assets. Proper internal control mechanisms provide management with a reasonable assurance that intended safeguards are being practiced consistently. Therefore, the integrity of any cash management activity depends on the application of internal control principles and standards.
The attainment of these principles and standards in the cash management area can be achieved by pursuing the following guidelines: a. The time-value-of-money shall be recognized as a part of each cash management decision.
b. Cash related transactions shall occur only after the approval of an individual with delegated authority to make approvals.
c. Cash related transactions shall be fully documented so that an undisputable audit trail exists.
41 | Page
Agenda Packet - Page 94 of 192
d. Cash related transactions shall be recorded promptly during each step of the cash handling function. e. Serially numbered forms shall be used to document cash related transactions to enhance reconciliation and accountability. f. Documents used in cash related transactions shall be safeguarded against re-use, tampering, or unauthorized disposal. g. Provisions shall be made for the regular review and comparison of transaction documentation to detect errors and duplicate payments. h. The approval of adjustments to cash related transactions shall be administratively controlled. i. Supervision of cash management activities shall be strictly and continually administered. j. Cash related duties, such as maintenance of accounts receivable, cashiering, accounting, disbursing, and collecting funds shall be segregated. k. Cash related accounts shall be frequently reviewed and reconciled with subsidiary records. l. The accessibility to funds and fund records shall be restricted and administratively controlled. m. Only properly designated employees shall handle imprest funds, disbursement certifications, and collection duties. n. Employees assigned cash related duties shall be trained and must accept their responsibilities. o. Unnecessary clerical routines and handling of cash or cash related documentation shall be eliminated to lessen the risk of loss and exposure to errors. p. Electronic funds transfer and direct deposit shall be used where feasible and advantageous. q. Computer edit programs shall be used to the maximum extent possible to disclose or reduce the incidence of error in cash related transactions. r. Cash derived from collections and cash used for disbursements shall not be commingled. s. Cash transactions shall not be used to substitute, or circumvent, prescribed procurement approvals and procedures. t. Checks received in collections shall be endorsed upon receipt and collections shall be safeguarded until deposit is accomplished. u. Deposits shall be processed within prescribed intervals and reconciled against records of funds received.
v. Prompt responses shall be made to reviews performed by the Office of Inspector General and the Government Accountability Office on cash management activities to correct cited deficiencies.
42 | Page
Agenda Packet - Page 95 of 192
w. Cash disbursement transactions shall be processed promptly, and cash shall be reconciled daily.
x. Cash held outside the Treasury shall be maintained at the minimum amount needed to cover current transactions.
y. Credit shall be extended only when authorized by a designated official who is aware of the Department's debt management policies.
z. Approved price lists shall be published to ensure a control over income for goods and services. This list of guidelines is by no means all-inclusive. Cash handling techniques and methods change as programs change and as new collection and disbursement technologies evolve over time. However, similar economically feasible standards should be established to fit these new collection and payment processes. Questions on applying internal controls in cash management should be submitted to the Finance Manager.
3. Substitutions of Credit Cards for Cash Transactions City departments shall use the City Credit Card for small purchases when economically feasible and will accept personal credit cards for collections--in lieu of cash or check--whenever possible. The use of the credit card for small purchases not only reduces the administrative cost of the procurement transaction, but results in better cash management with resultant interest savings. Acceptance of personal credit cards reduces the cost of collection activity, lessens the loss or possible theft of cash collected, and generally results in faster deposits to the bank.
All receipts should be submitted to the Finance office for reconciliation of all credit card transaction with the credit card statement. Any discrepancies should be investigated immediately.
XVI.
GRANT ACCOUNTING, REPORTING AND INTERNAL CONTROLS
PURPOSE
In order to meet state and federal grant requirements specific information is required. Therefore, it is imperative the City develop a system for maintaining and reporting all information related to any grant received. All grants are subject to audit so documentation is extremely important. All meetings related to grant activity should include the Finance Manager.
1. Documentation
A. Setup folders in Finance and any other department that will be tracking grant information.
B. Copies of all grant correspondence and documents are to be provided to the Finance department as they are received.
C. Identify the grant program title, CFDA #, DUNS number, and total awards. If there is no CFDA #, indicate so on the documents.
43 | Page
Agenda Packet - Page 96 of 192
D. Please provide current chart of accounts for this program (Fund, Appropriation, Units) and chart of account elements set up for the new grant activity.
E. Please identify the key program and finance personnel involved with this program and their roles/responsibilities.
F. Identify risks, areas of concern, and or lack of information that could potentially result in noncompliance with state and federal program, accounting, or reporting requirements. A formal risk assessment should be developed. Please provide a copy of your risk assessment.
G. Identify all revenues and expenses related to a grant by a unique title or project number and use the unique identifier on all documentation and transactions.
2. Accounting and Reconciliation
A. Direct charging via payment interface to General Ledger funds is preferred. However, journal entries may be necessary. If mistakes are found in booking of Grant revenues or payments, contact the Finance Manager immediately so the errors can be corrected in the GL as soon as possible.
B. Grant transactions are to be reconciled to the GL monthly if there is ongoing activity
C. Grant funds cannot be comingled with other funds. Each grant is to be tracked separately.
D. Identify the applicable state and federal reporting requirements for this grant.
E. Identify any accelerated reporting requirements
F. Identify any additional state and federal compliance regulations and requirements applicable to the funding for the grant program. If this is a new grant, provide information on state and federal compliance regulations and requirements.
3. Review of Contracts
A. Review all contracts to internal and external parties to ensure they are appropriately classified as a vendor or a sub-recipient and the contract contains sufficient detail of the responsibilities of each organization to ensure timely and accurate reporting on the use of grant funds, compliance with grant award requirements and State regulations, and proper reporting of the expenditure of federal dollars on the Federal Status Reports and the Schedule of Expenditures of Federal Awards.
B. Consider relationships with other grant programs and how they may impact your grant funding and accounting. Identify those programs and the relationship and how the flow of transaction activity will be addressed.
44 | Page
Agenda Packet - Page 97 of 192
XVII.
CONTRACTS AND SIGNATORY
Policy Statement
Any type of agreement that obligates the City to provide payment, services, goods or use of City properties, facilities or other resources to an external party (hereinafter “contracts”) must be signed by the City Manager (Charter Section 5.01) or designee. Only the City Manager and those specific individuals authorized in this policy or in writing by the City Manager, through published policies or other authorizing documents, have the authority to enter into contracts on behalf of the City.
Contracts which are not on City of Buda standard forms must be reviewed by Legal Counsel before being signed by an authorized City official. Individuals who execute contracts that are not authorized to do so may be personally liable for the obligations of the contract.
Purpose
To describe the requirements, procedures, and approval processes for City contracts and to define the delegation of authority deemed necessary and appropriate for the efficient administration of the City. This policy applies to all contracts that legally bind the City of Buda other than regular full-time staff employment contracts.
Contract Guidelines
The following guidelines apply to contracts between the City of Buda and any external party.
Each Department Director is responsible for following the Comprehensive Financial Management Policy Statements, Section XII Purchasing Policy (Purchasing Policy) and authorized to execute orders on behalf of the city within the policy guidelines. Any interpretation of the guidelines necessary for the effective operation of the purchasing function will be made by the City Manager or a designee.
Signatory Guidelines
A. City Manager or designee shall sign:
• Contracts, including grant agreements; personal, professional, and consultant services agreements; license agreements; and services agreements • Real property agreements, • Banking and other financial services agreements; and • Any other agreement, including purchase orders, for more than $50,000.00 in total revenue or expense.
Signatory authorization shall be in accordance with the Purchasing Policy.
B. The Department Director shall sign:
• Contracts, including service agreements and facility/space use agreements,
45 | Page
Agenda Packet - Page 98 of 192
• Other agreements of similar nature which generally are considered to be the department's responsibility within the City, which do not require the City Manager’s and/or Council’s approval.
Signatory authorization levels shall be in accordance with the Purchasing Policy.
PROCEDURE
The City of Buda Requisition of Goods or Services Form contains information and authorization for the approval of contract. The Form shall be completed prior to submittal to the City Manager for signature. All contract signatures shall be completed prior to submittal to the City Manager.
CODE OF ETHICS
Any individual entering into a contract on behalf of the City must accordingly exercise their authority in a manner consistent with Code of Ethics.
Reference
1) City of Buda Charter, Section 5.01:
The City Manager shall have the authority to execute on behalf of the City, standard form documents, including but not limited to deeds, releases of liens, rental agreements, easements, right-of-way agreements, joint use agreements, and other similar documents, under the following conditions:
a. The execution of the document is necessary to carry out a public works project; utilize, maintain or improve a City facility, street, right-of-way, easement, park or other City property, or to implement other City policies; provided that such project, program or policy has been approved by the City Council; b. That all blanks are filled in on any document correctly and that such document is consistent with the objectives approved by the City Council; and c. That the form of such document shall be approved by the City Attorney.
46 | Page
Agenda Packet - Page 99 of 192
City Council Agenda Item Report May 5, 2015
Agenda Item Contact – Sidonna Foust 312-0084 [email protected]
Subject: Discussion and possible Action to adopt the City of Buda Investment Policy thru Resolution in accordance with Texas Public Funds Investment Act.
1. Background/History The Texas Public Funds Investment Act, Section 2256.005 requires the governing body shall adopt by rule, order, ordinance, or resolution, as appropriate, a written Investment Policy regarding the investment of its funds. The Investment Policy must be adopted on an annual basis.
2. Findings/Current Activity A resolution for the adoption of the Investment Policy has been prepared for adoption and is attached.
3. Financial Impact The Investment Policy brings all the elements of the investment process and creates a coherent set of guidelines for the management of public funds. The policy has many sections which determine limits, responsibilities, and investment processes to be followed. The policy adopted annually will be based on regularly updated cash flow analysis.
4. Action Options/Recommendation Staff recommends the adoption of the Investment Policy and resolution dated May, 2015.
Agenda Packet - Page 100 of 192 RESOLUTION NO.
A RESOLUTION OF THE CITY OF BUDA, TEXAS, ADOPI'ING AN INVESTMENT POLICY FOR THE CITY OF BUDA; MAKING FINDINGS OF FACT; AND PROVIDING FOR RELATED MATTERS.
Whereas, the Texas Public Funds Investment Act, Section 2256.005 requires that the governing body of an investment entity shall adopt by rule, order, ordinance, or resolution, as appropriate, a written Investment Policy regarding the investment of its funds and funds under its control, and,
Whereas, the Texas Public Funds Investment Act requires that the Investment Policy, including a list of authorized investments and investment strategies, must be approved annually, and,
Whereas, the attached Investment Policy complies with the provisions of the Texas Public Funds Investment Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BUDA, TEXAS, HAYS COUNTY, THAT:
Section 1. As required by the Texas Public Funds Investment Act, the City Council has reviewed the Investment Policy and related investment strategies and that the revised Investment Policy made part of this City Council Resolution so adopted records any changes made to the City's Investment Policy and or investment strategies.
In addition, the following recitals are hereby found to be true and correct and are hereby adopted by the City Council and made a part hereof for all purposes as findings of fact.
Section 2. Authorization. The Investment Policy of the City of BUDA is hereby adopted in compliance with the requirements set forth in Texas Public Funds Investment Act.
Section 3. Effective Date. This Resolution shall take effect from and after the date of its passage as authorized by the Charter of the City of BUDA.
Section 4. Open Meetings. It is hereby officially found and determined that the meeting at which this Resolution is passed was open to the public as required and that public notice of the time, place, and purpose of said meeting was given as required by the Open Meetings Act, Chapter 551, Local Government Code.
Agenda Packet - Page 101 of 192 FINALLY PASSED AND APPROVED on the 5th day of May 2015..
THE CITY OF BUDA, TEXAS
Todd Ruge, Mayor
ATTEST:
Alicia Ramirez, City Secretary
Agenda Packet - Page 102 of 192
CITY OF BUDA, TEXAS
INVESTMENT POLICY
May 2015
Page 1 of 10
Agenda Packet - Page 103 of 192 TABLE OF CONTENTS
I. PURPOSE…………………………………………………………..Page 3
II. INVESTMENT OBJECTIVES……………………………………..Page 3
III. INVESTMENT STRATEGY…………………………………...... Page 4
IV. AUTHORIZED INVESTMENTS……………………………...... Page 5
V. COLLATERAL REQUIREMENTS…………………………...…...Page 6
VI. SAFEKEEPING OF SECURITIES & COLLATERAL……………Page 7
VII. INVESTMENT ADVISORY& BROKER/DEALER SERVICES…...Page 7
VIII. INVESTMENT AUTHORITY & MANAGEMENT………………...Page 8
IX. ANNUAL REVIEW OF INVESTMENT POLICY……………...Page 10
Page 2 of 10
Agenda Packet - Page 104 of 192 I. PURPOSE
Purpose and Scope
This Investment Policy applies to all investment activities of the City of BUDA of all funds held by the City of BUDA excluding funds held in the Employee Retirement Trust, Texas Municipal Retirement System, and the Deferred Compensation Plan. All applicable funds held by the City of BUDA shall be administered in accordance with the provisions of this policy. In addition to this policy, bond proceeds shall also be governed by the respective bond covenants and all applicable State and Federal Law.
This Investment Policy is intended to comply with the statutory requirements of the Texas Public Funds Investment Act (Chapter 2256, Texas Government Code).
Standard of care: Investments will be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived.
II. INVESTMENT OBJECTIVES
A. Preservation and Safety of Principal
The primary objective of all investment activity is the preservation and safety of principal in the overall portfolio.
B. Maintenance of Adequate Liquidity
The investment portfolio will be managed to provide adequate liquidity in order to meet the cash flow requirements that might be reasonably anticipated. Liquidity shall be achieved to the extent practical and feasible by matching investment maturities with forecasted cash flow requirements.
C. Diversification
The policy of the City of BUDA, except when investing with the Depository Bank will be to diversify its portfolio to the extent allowed under this policy. Investments of the City shall always be selected on the basis which provides for the preservation and safety of principal.
D. Yield
Consistent with federal and state law and the City's Investment Policy, it will be the objective of the Investment Officer to earn the maximum interest rate feasible in compliance with the requirements of the types of investments allowed under this policy.
Page 3 of 10
Agenda Packet - Page 105 of 192 E. Maturity
Portfolio maturities will be selected, if market conditions are favorable, in such a manner to optimize earnings while maintaining the necessary liquidity to meet the City's cash requirements. The maximum allowable stated maturity of any individual investment owned by the City will not exceed five years. The Maximum Weighted Average (WAM) will not exceed 25% of total revenue and the market prices will be obtained from an independent source.
F. Sale of Securities Prior to Maturity
The City Investment Officer may sell securities before maturity if market conditions present an opportunity for the City to benefit from the sale; funds are urgently needed to meet unforeseen expenditures, even if there is a loss of interest and/or principal due to the early sale; and when a security has lost its minimum required rating as an authorized investment.
G. Investment Management
It is the City's policy to provide training required under the Public Funds Investment Act, Sec. 2256.008 and periodic training in investments for the Investment Officer offered by professional organizations and associations in order to ensure compliance with the Act.
III. INVESTMENT STRATEGY
A. General
In conjunction with the annual review of the City's Investment Policy, the City Council shall review the investment strategy for investing City funds. The investment strategy shall be based on the investment objectives outlined in Section II of this policy.
B. Investment Guidelines by Fund Type
1. Operating Funds
Operating Funds require short-term liquidity to meet day to day cash requirements for City operations. Therefore, diversified investment maturities shall provide monthly cash flow based on the anticipated operating needs of the City. Short-term investment pools and other short- term securities allowed under this policy will be considered for the City 's Operating Funds
2. Bond Funds
Proceeds from the issuance of debt obligations such as Bonds issued for the acquisition and or the construction of capital assets shall only be invested in the types of investments allowed under this policy. The investment maturities shall generally follow the anticipated cash flow requirements of the capital projects for which the debt obligations were issued.
Page 4 of 10
Agenda Packet - Page 106 of 192
3. Repair and Replacement Funds
Should the City Council authorize the establishment of a Repair and Replacement Fund, the maturity date of investments in this Fund shall generally be limited to the anticipated cash flow requirements identified in the City's approved budget for planned projects. Funds accumulated in the Repair and Replacement Funds shall only be invested in the types of investments allowed under this policy.
4. Debt Service Funds
Debt Service Funds shall be invested to ensure adequate liquidity for making semi-annual principal and interest payments on outstanding debt obligations. Funds accumulated in the Debt Service Funds shall only be invested in the types of investments allowed under this policy.
5. Bond Reserve Funds
Should the City Council authorize the establishment of a Bond Reserve Fund in compliance with future bond covenants, funds accumulated in the Bond Reserve Fund shall only be invested in the types of investments allowed under this policy.
Generally, Bond Reserve Funds do not incur planned expenditures. When required under a specific bond covenant, the funds are deposited as a reserve to provide payment protection to the bondholders. The funds are eventually released after the reserve requirements have been fully satisfied.
6. Fiduciary Funds
Fiduciary Funds are used to report assets held in a trust or agency capacity for others such as for the City's Other Post-Employment Benefits (OPEB). All funds accumulated in the Fiduciary Funds shall only be invested in the types of investments allowed under this policy and shall be limited to the anticipated cash flow requirements.
IV. AUTHORIZED INVESTMENTS
Under the Texas Public Funds Investment Act several different types of investments are authorized. The City's Investment Policy requires that all funds held by the City of BUDA, Texas, as defined in this policy, shall be invested in the following types of investments which are authorized by the Texas Public Funds Investment Act: All securities must be settled (delivered to an independent party) delivery versus payment.
A. Guaranteed Securities
Securities guaranteed for both principal and interest by the federal government of the United States of America. All securities held in the City's name prior to the effective date
Page 5 of 10
Agenda Packet - Page 107 of 192 of this City Council Resolution are exempt until such securities mature and funds become available for reinvestment.
B. Certificates of Deposit
Collateralized certificates of deposit from banks whose collateral consists of securities of the United States or secured by a letter of credit from the Federal Home Loan Bank Board that guarantees both principal and interest and Certificates of Deposit must be made through a financial institution doing business in Texas.
C. Investment Pools
Local government investments pools that comply with the requirements as defined and authorized under the Texas Public Funds Investment Act; or
D. Other Authorized Investments
Collateralized certificates of deposit from banks secured by a combination of collateral and guarantees as provided in (A) and (B), and/or bonds and debt obligations of the State of Texas and other selected investment instruments as authorized under the Texas Public Funds Investment Act and approved by the City's Investment Officer that meet the investment objectives as prescribed in this policy.
V. COLLATERAL REQUIREMENTS
A. Collateral Levels
Consistent with the requirements of State law, the City requires all deposits in financial institutions to be federally insured or collateralized with eligible securities.
1. Certificates of Deposit
The market value of the principal portion of collateral pledged for certificates of deposit must at all times be equal to or greater than the par value of the certificate of deposit plus accrued interest, less the applicable level of FDIC coverage.
2. Guaranteed Securities
Securities that are guaranteed for both principal and interest by the federal government of the United States of America may not be subject to collateral requirements.
B. Monitoring Collateral Adequacy
The City shall require monthly reports with market values of pledged securities from all financial institutions that have issued Certificates of Deposits to the City as an investment. The City's Investment Officer will monitor adequacy of collateral levels for the protection of the City's investments.
Page 6 of 10
Agenda Packet - Page 108 of 192 If the collateral pledged for a Certificate of Deposit falls below the par value of the deposit less FDIC coverage, the financial institution that issued the Certificate of Deposit will be notified by the Investment Officer or its designee and will be required to pledge additional securities no later than two business days of notification.
C. Collateral Substitution
Collateral for Certificates of Deposit often require substitution of the original collateral. Any broker, dealer or financial institution requesting substitution must contact the Investment Officer or its designee for approval and settlement. The substituted security's value shall be calculated to ensure that its value is equal to or greater than the required collateral level. The Investment Officer or its designee must provide written notification of the decision to the bank or the safekeeping agent holding the security prior to any substitution. The Investment Officer or its designee may limit substitution and assess appropriate fees if substitution becomes excessive.
VI. SAFEKEEPING OF SECURITIES AND COLLATERAL
A. Safekeeping Agreement
The City shall contract with a financial institution or an investment bank for the safekeeping of securities either owned by the City as a part of its investment portfolio.
B. Safekeeping of Certificate of Deposit Collateral
All collateral securing any Certificate of Deposit in the City's investment portfolio must be held by the Federal Reserve Bank in the name of the City of BUDA, Texas.
VII. INVESTMENT ADVISORY AND BROKER/DEALER SERVICES
A. Investment Advisor
The City may utilize the services of an investment advisory firm to assist the City in managing investments. The selection of the best firm by the City shall be based on criteria established and evaluation of proposals solicited through a public solicitation process such as a Request for Proposal (RFP).
B. Investment Advisors and Broker/Dealers
Investment selection for all funds shall be based on compliance with the City's Investment Policy and the Texas Public Funds Investment Act. The City's investment portfolio shall be prudently managed to meet the stated objectives of this policy.
All investments made by the City will be made through either the City's depository bank or a primary dealer. A list of at least three broker/dealers will be maintained and reviewed annually in order to assure competitive bidding.
The City's Investment Officer will establish criteria to evaluate Investment Advisors and Broker/Dealers, including:
Page 7 of 10
Agenda Packet - Page 109 of 192 1. Adherence to the City's Investment Policy and strategies 2. Capability to comply with the Texas Public Funds Investment Act 3. Investment performance and transaction pricing 4. Responsiveness to the City's request for services, information and transparency in government investment activities 5. Understanding of the inherent fiduciary responsibility of investing public funds 6. Management and record-keeping system capabilities to meet all City and State reporting requirements including those required by the City's Investment Officer for transaction confirmations, market values, investment earnings, realized and unrealized gains and losses, and other monthly portfolio reports
Investment Advisory and Broker/Dealers firms authorized to complete investment transactions for City shall be provided a written copy of this Investment Policy. The registered principal of the business organization selected to transact investment business s for the City shall execute a written instrument to acknowledge and document that they have:
1. Received and reviewed the City's Investment Policy 2. The firm has taken precautionary measures and has implemented necessary procedures and internal controls to prevent imprudent and illegal investment activities with or for the City of BUDA.
The City shall not enter into an investment transaction with an Investment Advisory and or a Broker/Dealer firm prior to receiving the written assurance as described above.
VIII. INVESTMENT AUTHORITY AND MANAGEMENT REQUIREMENTS
A. Authority to Invest
The Director of Finance is the Investment Officer of the City. As the Investment Officer he/she is authorized to make all investment decisions related to deposits, withdrawals, fund transfers, execution of documents, and manage City funds in accordance and compliance with the rules governing the investment of City funds as provided in this Policy. In the absence of the Director of Finance, the City Manager shall serve as the interim Investment Officer in his/her place and is subject to the requirements set forth in this policy.
B. Investment Management
The City's Investment Officer shall perform his/her duties in accordance with the procedures prescribed in the Investment Policy. The City's Investment Officer may designate the Investment Advisor to complete certain financial transactions on the City's behalf as deemed necessary.
C. Personnel Authorized to Transact Fiscal Affairs
All vouchers, checks, drafts, certificates of deposit, orders for the release or exchange of securities
Page 8 of 10
Agenda Packet - Page 110 of 192 held as collateral for City's funds on deposit with its depository banks and any other instruments necessary in the transaction of City's financial affairs shall bear the signature of the Director of Finance or the City Manager and one of the following City officials: 1. Mayor 2. Assistant City Manager 3. City Secretary
It is required that at least one of the authorized signatures must be that of either the City's Director of Finance or the City Manager.
D. Standards of Ethics
The designated Investment Officer shall adhere to City's Code of Conduct. Additionally, the Investment Officer shall file with the Texas Ethics Commission and the City Council a statement disclosing any personal business relationship with an entity seeking to sell investments to the City or any relationship within the second degree by affinity or consanguinity to an individual seeking to sell investments to the City.
E. Establishment of Internal Controls
The Director of Finance will oversee the maintenance of a system of internal controls over the investment activities of the City within the City organization.
F. Liability of City's Investment Officer
The City Investment Officer is not responsible for any loss of City funds through the failure or negligence of a depository. The City's Investment Officer shall be relieved of any personal liability when fulfilling his/her responsibilities as the City's Investment Officer and acting in good faith to comply with the City's Investment Policy.
G. Required Training for City's Investment Officer
As required by the Texas Public Funds Investment Act, the City shall allow at its expense, for the Director of Finance as the City's Investment Officer, to obtain:
1. At least one training session from an independent source containing a minimum of ten (10) hours of instructions relating to the Investment Officer's responsibilities, within 12 months after taking office or assuming duties
2. Investments training session not less than once in a two-year period and receive not less than ten (10) hours of instructions relating to investment responsibilities from an independent source
H. Reporting Requirements
Investment performance will be monitored and evaluated by the Investment Officer. Not less than quarterly, the Investment Officer will provide a Quarterly report to the City Council that shall include:
Page 9 of 10
Agenda Packet - Page 111 of 192 1. Description of the investment position of the City 2. Beginning market value for the reporting period 3. Additions and changes to the market value during the period 4. Ending market value for the period 5. Fully accrued interest for the period 6. State the maturity date of investments that have a maturity date 7. State the compliance of the investment portfolio with the City's 8. Investment Policy and relevant provisions of the Texas Public Funds Investment Act
I. Annual Audit
The City's independent auditor, in connection with the annual audit of City's financial statements, records, and internal controls shall include review of investment reports. The independent auditor shall present the annual audit report to the City Council.
IX. ANNUAL REVIEW OF INVESTMENT POLICY
In compliance with the annual review requirements specified in the Texas Public Funds Investment Act, the City Council shall review the City's Investment Policy and investment strategies at least on an annual basis.
The City Council shall adopt a written instrument by rule, order, ordinance, or resolution stating that it has reviewed the Investment Policy and investment strategies and that the written instrument so adopted shall record any changes made to the Investment Policy or investment strategies.
Page 10 of 10
Agenda Packet - Page 112 of 192
City Council Agenda Item Report May 5, 2015
Contact – Chance Sparks, AICP, CNUa, Director of Planning 512-312-0084 / [email protected]
SUBJECT: PRESENTATION BY THE CAPITOL AREA COUNCIL OF GOVERNMENTS ON THEIR AIR QUALITY PROGRAM.
1. BACKGROUND/HISTORY At a prior City Council meeting, members of City Council requested a presentation and discussion of the Capitol Area Council of Governments Air Quality Programs.
2. FINDINGS/CURRENT ACTIVITY Fred Blood, Air Quality Specialist with CAPCOG, will provide a presentation to the City Council regarding their Air Quality Programs. Additional information is available at:
http://www.capcog.org/divisions/regional-services/air-quality/
3. FINANCIAL IMPACT N/A
4. ACTION OPTIONS/RECOMMENDATION This item is posted for presentation and discussion.
5. ATTACHMENTS Presentation Materials
Agenda Packet - Page 113 of 192 04/30/2015
Central Texas Air Quality
Buda City Council
May 5, 2015
CAPITAL AREA COUNCIL OF GOVERNMENTS Capital Area Council of Governments 04/30/2015 1 Be Air Aware
CAPCOG – Regional Planning Commission in Statute; More often called a COG.
• Emergency Communications 9-1-1 • Area Agency on Aging • Homeland Security Planning & Training • Regional Law Enforcement Academy • Air Quality Planning • Economic Development Analysis & Tech Assist • Solid Waste Planning
Capital Area Council of Governments 04/30/2015 2 Be Air Aware
Agenda Packet - Page 114 of 192 Be Air Aware 1 04/30/2015
Ten-County service area; State of Texas planning region 12
Capital Area Council of Governments 04/30/2015 3 Be Air Aware
CAPCOG Executive Committee
Council Member Commissioner Commissioner Judge Eileen Altmiller Joe Don Dockery Cynthia Long Ken Schawe City of Buda Burnet County Williamson County Caldwell County
Judge Judge Council Member Council Member State Representative Brett Bray Sarah Eckhardt Kirsten Lynch Ellen Troxclair Jason Isaac Blanco County Travis County City of Leander City of Austin State Representative Judge Judge Mayor Council Member Paul Workman Bert Cobb Dan A. Gattis Alan McGraw Donald Tracy Hays County Williamson County City of Round Rock City of Cedar Park State Representative Eddie Rodriguez Mayor Mayor Mayor Mayor Jeff Coleman Daniel Guerrero Caroline Murphy Lew White Senator City of Pflugerville City of San Marcos City of Bee Cave City of Lockhart Judith Zaffirini
Commissioner Mayor Judge Will Conley Debbie Holland James Oakley Hays County City of Hutto Burnet County
Judge Mayor Judge Mary Cunningham Marc Holm Paul Pape Llano County City of Elgin Bastrop County
Commissioner Judge Commissioner Gerald Daugherty Ed Janecka Maurice Pitts Travis County Fayette County Lee County
Capital Area Council of Governments 04/30/2015 4 Be Air Aware
Agenda Packet - Page 115 of 192 Be Air Aware 2 04/30/2015
Status of Central Texas Air Quality
• In compliance with all National Ambient Air Quality Standards (NAAQS) – Ozone Levels: 92% of NAAQS
– Annual PM2.5 Levels: 68% of NAAQS
– Daily PM2.5 Levels: 58% of NAAQS • “Good” Air Quality on 70% of days in 2014 – 88 “Moderate” PM days – 31 “Moderate” Ozone Days • No Expected Adverse Impacts to Health or Environment from Ambient Air Toxics Levels
04/30/2015 Capital Area Council of Governments 5
EPA’s Proposed Ozone Standards
• Proposes to lower the level from 75 parts per billion (ppb) to a range of 65-70 ppb • Intended to increase protections for public health and vegetation • Central Texas Levels 2012-2014: 69 ppb • Court order to finalize by October 1, 2015 • 2014-2016 Ozone data will likely be key
04/30/2015 Capital Area Council of Governments 6
Agenda Packet - Page 116 of 192 Be Air Aware 3 04/30/2015
What Is Ground-Level Ozone?
Capital Area Council of Governments 04/30/2015 7 Be Air Aware
Review of Ozone Health Impacts
Capital Area Council of Governments 04/30/2015 8 Be Air Aware
Agenda Packet - Page 117 of 192 Be Air Aware 4 04/30/2015
Impacts of Ozone Exposure
Respiratory Effects on Damage to Vegetation Humans And Reduced Crop Yields
# of Deaths in 2007 Associated with Peak Summertime Ozone Levels County Smith et. al Zanobetti Jerrett et. al Study Study Study Bastrop 2-4 2-4 4-8 Caldwell 1-2 1-2 4-8 Hays 2-4 2-4 8-16 Travis 16-32 16-32 >64 Williamson 8-16 8-16 16-32 Source: Health and Risk Exposure Assessment, Figures 8-2, 8-3, and 8-4 http://www.epa.gov/ttn/naaqs/standards/ozone/s_o3_2008_rea.html Capital Area Council of Governments 04/30/2015 9 Be Air Aware
Compliance with Ozone NAAQS
100
95
90 89 89 88
85 85 85 84 82 82 EPA Proposes Using 80 80 2014-2016 Average for Nonattainment Designations 77 75 75 75 74 74 73 70
Hour Ozone Averages (partsbillion) per Averages Ozone Hour 69 -
8 68 67 65 65
60 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1997 Standard 2008 Standard Proposed 2015 Standard Design Value
Source for 1999-2014 data: TCEQ https://www.tceq.texas.gov/cgi-bin/compliance/monops/8hr_attainment.pl 04/30/2015 Capital Area Council of Governments 10
Agenda Packet - Page 118 of 192 Be Air Aware 5 04/30/2015
2014 Ozone Levels Around the Region
66 ppb
63 ppb 62 ppb
53 ppb 67 ppb 57 ppb 69 ppb 67 ppb 64 ppb
Capital Area Council of Governments 04/30/2015 11 Be Air Aware
Impacts of O3 Nonattainment Designation
• More difficult to build new roads • Industrial growth is limited • Federal approvals become more difficult • No “back-sliding”
Capital Area Council of Governments 04/30/2015 12 Be Air Aware
Agenda Packet - Page 119 of 192 Be Air Aware 6 04/30/2015
Central Texas Clean Air Coalition
• County and City Elected Officials • Adopts Air Quality Plans • Policies and Strategies to Guide Member Jurisdictions • Won 2014 Clean Air Excellence Award from EPA
Capital Area Council of Governments 04/30/2015 13 Be Air Aware
Cities Participating in the CAC
City CAC Member Non-CAC Member Austin 790,390 Round Rock 99,887 Cedar Park 48,937 Georgetown 47,400 Pflugerville 46,936 San Marcos 44,894 Kyle 28,016 Leander 26,521 Taylor 15,191 Hutto 14,698 Lockhart 12,698 Lakeway 11,391 Elgin 8,135 Buda 7,295 Bastrop 7,218 Lago Vista 6,041 Luling 5,411 Manor 5,037 Others 40,549
Capital Area Council of Governments 04/30/2015 14 Be Air Aware
Agenda Packet - Page 120 of 192 Be Air Aware 7 04/30/2015
Regional Air Quality Goals
1. Stay in attainment of the 2008 eight-hour ozone National Ambient Air Quality Standards (NAAQS) of 75 parts per billion (ppb); 2. Continue reducing the region’s 8-hour ozone design value to avoid being designated nonattainment for a new ozone NAAQS; 3. Put the region in the best possible position to bring the area into attainment of an ozone standard expeditiously if it is does violate an ozone standard or gets designated nonattainment; 4. Reduce the exposure of vulnerable populations to air pollution when the region experiences high ozone levels, and 5. Minimize the costs to the region of any potential future nonattainment designation.
Capital Area Council of Governments 04/30/2015 15 Be Air Aware
What Can be Done?
• Ensure Existing Voluntary Commitments Are Fully Implemented • Recruit New Participants in the Ozone Advance Program Action Plan – Commute reduction programs – Ozone action day programs – Replace older vehicles and equipment – Conserve electricity, gas, and water – Encourage contractors to reduce emissions
Capital Area Council of Governments 04/30/2015 16 Be Air Aware
Agenda Packet - Page 121 of 192 Be Air Aware 8 04/30/2015
Questions?
Capital Area Council of Governments 04/30/2015 17 Be Air Aware
THANK YOU!
Capital Area Council of Governments Air Quality Program http://www.capcog.org/airquality
Fred Blood Air Quality Program Specialist [email protected] (512) 916-6063
Capital Area Council of Governments 04/30/2015 18 Be Air Aware
Agenda Packet - Page 122 of 192 Be Air Aware 9
City Council Agenda Item Report May 5, 2015
Agenda Item No. Contact – Stanley Fees, P.E., CFM, City Engineer 312-0084 [email protected]
SUBJECT: Deliberation and possible action on the approval of a Supplementary Agreement with AECOM for the Wastewater Treatment Plant expansion project for designing a new Effluent Force Main and upsizing the Garison Road influent gravity wastewater line to the Wastewater Treatment Plant and authorizing the City Manager to execute the Supplementary Agreement.
1. BACKGROUND/HISTORY The City of Buda awarded a contract to AECOM on June 3, 2014 to design the Wastewater Treatment Plant (WWTP) expansion from 1.5 Million Gallons per Day (MGD) to 3.0 MGD.
The scope for designing the WWTP expansion included designing a new effluent force main that would be parallel to the existing effluent force main from the WWTP to the discharge point at Plum Creek near the Meadows at Buda subdivision.
2. FINDINGS/CURRENT ACTIVITY AECOM has initiated the WWTP expansion design and prepared a draft of the Preliminary Engineering Report for the expansion.
AECOM has also investigated the existing effluent outfall location with TCEQ and has been informed TCEQ will not allow any additional effluent to be discharged at this outfall location due to water quality constraints in the tributary. AECOM has performed some preliminary investigation and has located another discharge site for the new effluent force main that TCEQ will allow to be permitted for the WWTP expansion effluent discharge. This site is located in the Sunfield Municipal Utility District (MUD). An aerial map showing the proposed outfall route and location is attached for reference.
The design scope provided in the Supplemental Agreement for this new effluent force main is to cover the additional work for this new force main alignment compared to paralleling the existing effluent force main alignment. A copy of the Supplemental Agreement is attached for reference.
Agenda Packet - Page 123 of 192
The estimated effluent force main length is approximately 21,000 LF compared to 17,000 LF for the original alignment. The construction of a new effluent force main will require the design of two separate sets of effluent pumps designed for the different hydraulic conditions for the existing and proposed force mains.
AECOM will provide the TPDES permitting support for the new effluent outfall location.
The influent gravity wastewater line along Garison Road is currently surcharging during peak hour flows and needs to be upsized to provide additional capacity to prevent this surcharging. This wastewater line was originally included in the Downtown Wastewater Rehabilitation project. Due to the complexity of the design to connect this wastewater line into the new headworks for the WWTP expansion and wanting to make sure the design was properly coordinated with the WWTP expansion design, this line was removed from the Downtown Wastewater Rehabilitation project. AECOM was asked to provide a proposal for providing the design of this additional wastewater line. This wastewater line will be bid with the WWTP expansion to allow adequate coordination with the headworks design and construction. An aerial map showing the wastewater line route is attached for reference.
3. FINANCIAL IMPACT The cost for this Supplemental Agreement is $187,606.
The influent gravity wastewater line was originally included in the Downtown Wastewater Rehabilitation project. There was $2,400,000 budgeted for this project in the 2014A Certificates of Obligation (CO’s). The bid amount awarded for the Downtown Wastewater Rehabilitation project is $1,435,131. This provides a fund balance of $964,869 in the 2014A CO’s for this project.
The cost for AECOM to design the influent gravity wastewater line from the Downtown Wastewater Rehabilitation project is $75,005. This portion of the Supplemental Agreement can be paid from the 2014A CO’s.
The remaining cost for the Supplemental Agreement of $112,601 can be paid from the wastewater capital fund balance.
4. ACTION OPTIONS/RECOMMENDATION Staff is requesting the City Council consider approval of a Supplementary Agreement with AECOM for the Wastewater Treatment Plant expansion project for designing a new Effluent Force Main and upsizing the Garison Road influent gravity wastewater line to the Wastewater Treatment Plant and authorizing the City Manager to execute the Supplementary Agreement.
5. ATTACHMENTS 1. Supplemental Agreement 2. Sunfield outfall location map 3. Garison Road wastewater line map
Agenda Packet - Page 124 of 192 a AECOM 512 472 4519 tel 400 West 15th Street 512 472 7519 fax Suite 500 Austin, Texas 78701 www.aecom.com
March 10, 2015
Mr. Kenneth Williams City Manager City of Buda P.O. Box 1218 Buda, Texas 78610
Re: Buda WWTP Phase III Expansion Supplemental Amendment No. 1, Rev. 1
Dear Mr. Williams:
AECOM Technical Services, Inc., (AECOM) is pleased to submit this revised proposal for supplemental professional engineering services. If acceptable, this proposal will form the basis for a Supplemental Amendment to the existing Professional Services Agreement executed on June 10, 2014.
PROJECT DESCRIPTION
The City of Buda WWTP is located north of the intersection of Loop 4 and the Missouri-Pacific Railroad in Buda, Texas, and is permitted under the Texas Pollutant Discharge Elimination System (TPDES) Permit No. 11060-001 for an annual average daily flow (ADF) of up to 1.5 million gallons per day (MGD).
The City of Buda WWTP (City) has engaged AECOM to provide professional engineering services for expansion of the City’s existing Wastewater Treatment Plant to 3 MGD capacity. The project scope additionally includes AECOM’s services in support of an application for amendment of the WWTP’s TPDES permit; a re-rating study; and a new offsite effluent force main.
The City is performing a separate project (by others) to reduce infiltration and inflow (I/I) in the existing wastewater collection system through pipe bursting and other rehabilitation methods. The existing influent gravity sewer extending in Garison Road from Main Street to the WWTP entrance road, then westward to the WWTP headworks has been identified as requiring complete replacement. In order to best coordinate the design of the replacement gravity sewer with the design of headworks modifications for the WWTP expansion project, the City of Buda has requested AECOM to provide a scope and fee proposal for engineering services for the replacement influent gravity sewer design and construction, to be performed as a supplemental amendment to AECOM’s existing Professional Services Agreement for the WWTP expansion project. This Supplemental Amendment includes preliminary engineering, final design, bid and construction phase services for the proposed influent gravity sewer.
Additionally, preliminary modeling performed by the Texas Commission on Environmental Quality (TCEQ) indicates regulatory constraints on increased discharge of effluent at the existing outfall
Agenda Packet - Page 125 of 192
location, requiring development of an alternative outfall location for the proposed WWTP expansion. AECOM has worked with TCEQ modelers and met with the City to assist in identifying and evaluating alternative outfall locations. The City of Buda does not wish to pursue permitting of an outfall to Onion Creek at this time. A potential outfall location to Plum Creek has been identified at a location east of IH-35, and the City is negotiating with property owners to finalize an agreement to enable discharge at the proposed additional outfall location. The proposed effluent force main to this outfall location will require greater length and a different alignment than anticipated in AECOM’s base contract scope of services, which were based on design and construction of a parallel effluent force main in the same alignment as the existing effluent force main. This Supplemental Amendment includes AECOM’s additional services for preliminary engineering, final design, bid, construction of the proposed effluent force main at a greater length and different alignment than anticipated in the base contract scope of services. Additional services related to the revised effluent force main alignment are required due to the following:
Estimated force main length of approximately 21,000 LF is anticipated for the proposed alternative force main alignment, versus 17,000 LF for the original alignment.
Construction drawing and design survey CAD files prepared previously for the existing force main will not be usable as drawing background files as previously assumed.
Increased utility coordination, traffic control, permitting, and easement definition services are required for a proposed force main alignment in or adjacent to the Main Street / IH-35 ROWs.
Additional TPDES permitting support services are required for permitting of the proposed additional effluent outfall location.
The design of the WWTP effluent pump station must include two separate sets of effluent pumps design for different hydraulic conditions for the existing and proposed force mains.
Additional meetings and an extended schedule for project management were required to assist the City in identifying, selecting, permitting and implementing the alternative outfall location.
This scope and fee proposal only includes additional services required for changes in the project scope requested by the City of Buda. Services which are required for the project completion but are already included in the existing Professional Services Agreement executed on June 10, 2014 are not repeated herein. This Supplemental Amendment does not modify the base contract except as specifically stated below.
ASSUMPTIONS This Scope and Fee proposal is based upon the following assumptions: The proposed gravity sewer will be constructed approximately parallel to the existing pipeline, in an alignment following the Garison Road ROW and existing plant north entrance road. The anticipated length for the replacement gravity sewer is approximately 2,100 linear feet. The City of Buda will provide available construction drawings, survey data, and geotechnical data for the existing / gravity sewer and previous studies (by others) of the proposed sewer capacity and alignment.
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 2 of 13 Scope of Services
Agenda Packet - Page 126 of 192
The proposed effluent force main will be constructed in an alignment in or parallel to the Garison Road ROW south to Main Street; continuing in or parallel to the Main Street ROW east to the east end of the Row; then through private property southeast to the proposed outfall location. The anticipated length for the proposed additional effluent force main is approximately 20,000 linear feet. The City will provide review comments within two weeks of receiving interim deliverables from AECOM for review. No work is anticipated to be required within the railroad ROW for design or construction, other than permitting of one trenchless crossing in or parallel to the Main Street ROW. Permits will not be required from TXDOT or the Missouri Pacific Railroad for the proposed gravity sewer. Acquisition of new easements will not be required for the gravity sewer construction. Design of the proposed influent gravity sewer will be coordinated with the design of the headworks facilities for the WWTP Expansion Project. This coordination may impact the influent gravity sewer project schedule. A preliminary engineering report will not be prepared for design of the proposed influent gravity sewer. Preparation of a SWPPP for pipeline construction is not included and will be performed by the Contractor.
If any of these assumptions is determined to be invalid, a separate scope and fee proposal for additional services may be required as a result of these changed assumptions.
SCOPE OF SERVICES The following Scope of Basic Services has been divided into four major components: preliminary engineering; final design; bid phase services; and construction phase services. Special services that fall outside this scope of work are described later in this document.
Preliminary Engineering Design Phase
The preliminary engineering phase scope of work consists of the following tasks.
TPDES Permitting Support
(Task numbering follows the base contract scope of services task numbers for analogous tasks).
1. Advance coordination performed with TCEQ modeling staff to identify and evaluate potential alternative outfall locations and anticipated effluent quality limitations.
2. Meet with City of Buda to discuss discharge alternatives and select preferred outfall location, and coordinate with City and Sunfield MUD to define proposed outfall location, obtain right-of- entry for surveys, and define proposed force main alignment through private property.
11. Complete Domestic Technical Worksheet 2.0: Prepare worksheet regarding the description of the receiving waters. The proposed scope and fee for this task is based on the assumption that the proposed additional outfall is not within 300 feet of a Classified Segment.
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 3 of 13 Scope of Services
Agenda Packet - Page 127 of 192
12. Complete Domestic Technical Worksheet 2.1: Conduct a site visit to gather transect measurements for 0.5 miles downstream of the proposed additional outfall, complete downstream observations, and calculate stream flow estimates. Prepare worksheet regarding the stream physical characteristics. Exhibit No. 2A provides an itemization of the labor and expenses associated with these TPDES Permitting Support Preliminary Engineering Design Phase Tasks. Influent Gravity Sewer Preliminary Engineering Design
1. Attend a meeting with the City of Buda to discuss the design of the proposed gravity sewer.
2. Obtain and review available information including drawings, survey data, and geotechnical information for the existing influent gravity sewer, to be furnished by the City of Buda.
3. Obtain and review capacity/size calculations (by others) for the proposed gravity sewer and confirm hydraulic design basis, proposed pipe diameter, and proposed pipe material.
4. Obtain and review utility and construction drawings from the City of Buda for existing utilities within the project limits. Coordinate with the City of Buda and meet with representatives of dry utilities (electric, gas, telephone, cable) to coordinate locations of the dry utilities with respect to the proposed influent gravity sewer and to obtain marking of existing utilities in the field.
5. Perform a site visit to the existing gravity sewer alignment to visually compare existing surface conditions including marked existing utilities to the existing gravity sewer drawings to identify visibly changed site conditions, and to identify visible conflicts or constraints.
6. Coordinate surveying of the proposed gravity sewer alignment. A pipeline and drainage topographic design survey will be performed to tie in control monuments, confirm elevations, and document site conditions, including any marked existing utilities locations. Survey scope is anticipated to include the Garison Road ROW, the WWTP north entrance road and east perimeter road, and the drainage swale and parking area south of the WWTP headworks.
7. Coordinate engineering geotechnical study of the proposed influent gravity sewer alignment. This task assumes two geotechnical bores each up to 15 feet in depth, with laboratory analyses and design recommendations for the pipeline provided in a letter-report.
8. Based on record drawings, site visits, survey information, and available easement/property records, define the alignment and assignment within ROW and existing or proposed easements for the proposed influent gravity sewer. This task does not include preparation of field notes or metes and bounds exhibits for easement acquisition.
9. Meet with the City of Buda to review the proposed alignment. Finalize the proposed alignment, based on factors such as utility assignments and locations of existing or proposed improvements.
10. Conduct progress meetings with the City's Project Manager. It is anticipated that up to three meetings will be required during the preliminary engineering phase.
11. Review environmental and cultural resources data furnished by the City of Buda. Identify potential regulatory issues and agency coordination, permits or mitigation that may be required during construction. This task does not include agency coordination, preparation of permit applications, or permitting fees.
12. Prepare preliminary (30%) plan view drawing exhibits for the gravity sewer alignment.
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 4 of 13 Scope of Services
Agenda Packet - Page 128 of 192
13. Prepare preliminary estimate of probable construction cost.
14. Prepare project schedule to define duration for final design, bidding of the project and construction to provide the City of Buda with planning data for project completion.
Exhibit No. 2B provides an itemization of the labor and expenses associated with these Influent Gravity Sewer Preliminary Engineering Design Phase Tasks.
WWTP Expansion Preliminary Engineering Design (Task numbering follows the base contract scope of services task numbers for analogous tasks).
1. Additional progress meetings and extended project management schedule required for evaluation of alternative outfall locations and permitting of propose additional outfall. This task includes three additional progress meetings during the preliminary engineering phase.
11. AECOM will perform additional hydraulic design based on pumping effluent to the proposed additional outfall location for the Phase III (3.0 MGD) expansion. Anticipated facilities to be designed include: n. Dechlorination System Modifications This task includes design of physical pumping system modifications and design of revised Instrumentation and Control system for dosing sodium bisulfite to two separate effluent pumping systems. p. Effluent Pump Station This task includes hydraulic design calculations for pumping facilities to the proposed additional force main and outfall, and for design of discharge header interconnections to the two effluent force mains.
Exhibit No. 2C provides an itemization of the labor and expenses associated with these WWTP Expansion Preliminary Engineering Design Phase Tasks.
Effluent Force Main Preliminary Engineering Design The preliminary engineering design of the proposed effluent force main will be performed in parallel with the preliminary engineering phase scope of work for proposed Phase III 3.0 MGD WWTP expansion; however the effluent force main preliminary engineering design has been delayed and the scope required for Preliminary Engineering design of the effluent force main has been increased due to the need to discharge effluent to a different location in addition to the existing effluent outfall. The scope of basic services and task budget defined in the base contract for effluent force main Preliminary Engineering will be applied to Preliminary Engineering design of the proposed force main in the revised alignment. The following tasks define the additional services required to complete Preliminary Engineering design of the proposed force main at an increased length and in an alignment along the Main St. / IH-35 ROWs. (Task numbering follows the base contract scope of services task numbers for analogous tasks).
3. Obtain and review utility record drawings and construction drawings from the City of Buda for the existing utilities within the project limits. Coordinate with the City of Buda and meet with representatives of dry utilities (electric, gas, telephone, cable) to coordinate locations of the dry utilities with respect to the proposed effluent force main and to obtain marking of existing utilities in the field. (City will contact one-call center for utility marking before survey).
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 5 of 13 Scope of Services
Agenda Packet - Page 129 of 192
4. Perform site visits to the proposed force main alignment to evaluate existing surface conditions including marked existing utilities, and to identify visible conflicts or constraints for design and construction of the proposed force main. 5. Establish scope of survey and coordinate limited surveying as per the attached proposal (McKim-Creed). This task assumes that LiDAR data furnished by the City of Buda will be supplemented by on-the-ground survey where required to define ROW/property ownership or to resolve potential topographic constraints and/or define existing utility locations. 6. Establish scope of geotechnical investigation and coordinate Geotechnical Study as per the attached proposal (Fugro). This task includes additional exploratory bores required for 5,000 LF additional force main length beyond Garison Road ROW, and additional traffic and utility co-ordination requirements for soil borings in an alignment adjacent to Main Street. 7. Based on record drawings, site visits, survey information, and available easement/property records, confirm the alignment and define the detailed alignments and assignments within the ROW and easements for the proposed effluent force main. 9. Based on the proposed alignment, determine need for supplemental easements, including dimensions and location. Also define temporary construction and access easement requirements. This task does not include preparation of metes and bounds exhibits or legal descriptions for easement acquisition. 11. Coordinate permitting requirements with TxDOT and Missouri Pacific Railroad for the utility work to determine the project schedule and cost impact. 13. Prepare preliminary (30%) plan view drawing exhibits for the force main alignment and required easements. Exhibit No. 2D provides an itemization of the labor and expenses associated with these Effluent Force Main Preliminary Engineering Design Tasks.
Final Design Phase
The final design phase will proceed after receiving authorization from the City and concurrence on the PERs.
Influent Gravity Sewer Final Design
Upon authorization, perform final design and prepare construction drawings for the gravity sewer.
1. Attend a meeting with the City of Buda to confirm design parameters for the project.
2. Schedule and coordinate milestone submittal review meetings with the City of Buda during the final design phase. Submittals of milestone review packages will be made one week prior to scheduled review meetings. Milestone submittals will be made to the City of Buda at 60% and 90% completion. Milestone submittals will consist of half size copies of all drawings underway and draft versions of project specifications.
3. Define manhole locations and pipe slopes and diameters. Finalize the hydraulic design and capacity of the proposed gravity sewer based on final pipe diameters, slopes, and materials.
4. Prepare plan and profile drawings for the proposed gravity sewer detailing size, depth, routing, and construction details. Plan and profile drawings to be at 1" = 30' horizontal and 1" = 3' vertical. For the purposes of this proposal, it is assumed that 2,100 linear feet of gravity
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 6 of 13 Scope of Services
Agenda Packet - Page 130 of 192
sewer will be required, to be installed in parallel to the existing influent sewer.
5. Prepare general drawing sheets, including cover/site plan, a traffic control plan for construction along City streets rights-of-way, and standard notes and details. This proposal assumes that temporary erosion and sedimentation controls will be shown on plan and profile sheets rather than as separate drawings.
6. Prepare job specific construction contract documents for the project. AECOM standard front end documents will be used and modified for job specific requirements.
7. Prepare technical specifications for the influent gravity sewer construction. AECOM specifications, modified for job specific requirements, will be used for the project.
8. Prepare and submit interim 60% and 90% deliverables for additional force main length and more densely developed alignment, and incorporate City’s review comments.
9. Finalize estimate of probable construction cost for the gravity sewer project.
10. Prepare construction document package including plans, specifications, and final engineering letter report, and submit five (5) copies of the package to the City of Buda for review and comment. Incorporate City of Buda comments and prepare package for bidding.
11. Submit summary transmittal letter, and if required, completed construction plans, specifications, and report to the TCEQ for review and comment.
Exhibit No. 3A provides an itemization of the labor and expenses associated with these Influent Gravity Sewer Final Design Phase Tasks.
WWTP Expansion Final Design (Task numbering follows the base contract scope of services task numbers for analogous tasks).
1. Perform Final Engineering Design and prepare construction plans and technical specifications based on the Preliminary Engineering Report. AECOM technical specifications, modified for job specific requirements, will be used for the project. The proposed improvements to be designed by AECOM for the 3.0 MGD expansion include the following: n. Dechlorination System Modifications – revised pumping system and Instrumentation and Control systems modifications required for dosing sodium bisulfite to two separate effluent discharge pumping systems. p. Effluent Pump Station Expansion – pumps and discharge piping system required for additional force main and outfall. Exhibit No. 3B provides an itemization of the labor and expenses associated with these WWTP Expansion Final Design Tasks.
Effluent Force Main Final Design Upon authorization by the City of Buda, perform final design and prepare construction drawings and specifications for the proposed effluent force main. The scope of basic services and task budget defined in the base contract for effluent force main Final Design will be applied to Final Design of the
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 7 of 13 Scope of Services
Agenda Packet - Page 131 of 192
proposed force main in the revised alignment. The following defines the required additional scope of final design phase basic services.
(Task numbering follows the base contract scope of services task numbers for analogous tasks).
4. Prepare detailed plan and profile drawings for the additional length of force main detailing size, depth, routing, and construction details. Plan and profile drawings to be at minimum scales of 1" = 50' horizontal and 1" = 5' vertical. For the purposes of this proposal, it is assumed that 21,000 linear feet of 24-inch force main will be required, to be installed in parallel to the existing effluent force main. 5. Prepare and submit permit applications to TxDOT and Missouri Pacific Railroad to construct pipelines in their rights-of-way where applicable, and for applicable bores. 7. Prepare a traffic control plan for construction adjacent to or within rights-of-way.
Exhibit No. 3C provides an itemization of the labor and expenses associated with these Effluent Force Main Final Design Tasks.
Bid Phase Services
Influent Gravity Sewer Bid Phase Services
1. Prepare “Advertisement for Bid” form and submit to the City of Buda for publication in appropriate newspapers.
2. Produce sets of bid documents as necessary. Distribute half size plans and specifications to contractors bidding on the project. Record all issuance of bid documents. Contractors and suppliers will be charged a non-refundable fee for the plans and specifications. All fees collected for plans and specifications will be on behalf of the City of Buda
3. Provide assistance to the City of Buda to schedule, coordinate and attend a pre-bid conference for the project.
4. Respond to questions during the bid phase of the project and coordinate the issuance of documents.
5. Issue contract addenda resulting from the pre-bid conference. It is anticipated one (1) addendum will be required.
6. Assist the City of Buda in the receipt of bids. AECOM will tabulate the bids, verify references of the two apparent low bidders, confirm bonding and provide a recommendation of award.
7. Prepare conformed contract documents and submit documents to the City of Buda and Contractor for execution.
Exhibit No. 4 provides an itemization of the labor and expenses associated with these Influent Gravity Sewer Bid Phase Tasks.
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 8 of 13 Scope of Services
Agenda Packet - Page 132 of 192
Construction Phase Services
Influent Gravity Sewer Bid Phase Services
1. Attend a pre-construction conference between the City of Buda and the Contractor to discuss general and specific requirements for fulfilling the construction contract.
2. Issue instructions to the Contractor requested by the City of Buda. Answer requests for information (RFI) and issue interpretations and clarifications of the plans and specifications, as needed.
3. Prepare and process change orders to the construction contract. This proposal assumes one (1) change order to the contract.
4. Construction progress site visits. This proposal is based on up to three site visits to observe the progress and quality of the executed work, and to determine in general, if the work is proceeding in accordance with the Contract Documents. These visits include attending progress meetings while on-site for construction observation.
In performing this service, the Engineer will not be required to make exhaustive or continuous on-site inspections to check the quality or quantity of the work or material; he/she will not be responsible for the techniques of construction or the safety precautions incident thereto; and he/she will not be responsible nor liable in any degree for the Contractor’s failure to perform the construction work in accordance with the Contract Documents. During visits to the construction site, and on the basis of the Engineer’s on-site observations, he/she will keep the City of Buda informed of the extent of the progress of the work, and advise the City of Buda of material and substantial defects and deficiencies in the work of contractors which are discovered by the Engineer or otherwise brought to the Engineer’s attention in the course of construction.
5. Check and review samples, catalog data, schedules, shop drawings; laboratory, shop and mill tests of materials; and other data which the Contractor is required to submit, only for conformance with the design concept of the Project and compliance with the Contract Documents. This proposal is based on up to 16 submittals, with each submitted an average of 1.5 times and requiring two (2) man-hours to review each time.
6. Coordinate construction materials testing and inspection services to include laboratory and field testing of soils and paving. These services will be provided by Fugro Inc., as detailed in the attached proposal.
7. Provide construction phase surveying to establish and/or restore up to two (2) temporary benchmarks for use as horizontal and vertical control points by the construction contractor.
8. Based on the Engineer’s on-site observations as an experienced and qualified professional, and upon review of applications for payment and the accompanying data and schedules, determine the amounts owing to the Contractor and recommend in writing payments to the Contractor in such amounts. This proposal is based on up to three (3) monthly pay estimates plus one (1) final pay estimate each requiring approximately two (2) man-hours.
9. Conduct, with the City of Buda, a final review of the project for compliance with the Contract Documents and make a recommendation concerning the project’s status as it may affect the City of Buda’s final payment to the Contractor. Provide a certification that the project was completed and the work constructed in general accordance with the plans and specifications.
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 9 of 13 Scope of Services
Agenda Packet - Page 133 of 192
10. Prepare record drawings assembled from the Contractor’s markups of changes made during the construction process. Provide the City of Buda three (3) copies of the record drawings, and files in electronic format on CD-ROM.
Exhibit No. 5A provides an itemization of the labor and expenses associated with these Influent Gravity Sewer Construction Phase Tasks.
Effluent Force Main Construction Phase Services
Construction phase engineering services will commence upon execution of the construction Contract by the City of Buda and authorization to proceed with construction phase services for the Effluent Force Main. The scope of basic services and task budget defined in the base contract for effluent force main Construction Phase Services will be applied to Construction Phase Services for the proposed force main in the revised alignment. The following defines the required additional scope of construction phase basic services.
(Task numbering follows the base contract scope of services task numbers for analogous tasks).
2. Issue all instructions to the Contractor requested by the City of Buda. Answer requests for information (RFI) and issue interpretations and clarifications of the plans and specifications, as needed, estimated to require up to 4 hours per week for the duration of construction.
4. Additional construction progress site visits. This proposal is based on one visit every two weeks to observe the progress and quality of the executed work, and to determine in general, if the work is proceeding in accordance with the Contract Documents. These visits include attending monthly on-site progress meetings while on-site for construction observation.
In performing this service, the Engineer will not be required to make exhaustive or continuous on-site inspections to check the quality or quantity of the work or material; he/she will not be responsible for the techniques of construction or the safety precautions incident thereto; and he/she will not be responsible nor liable in any degree for the Contractor’s failure to perform the construction work in accordance with the Contract Documents. During visits to the construction site, and on the basis of the Engineer’s on-site observations, he/she will keep the City of Buda informed of the extent of the progress of the work, and advise the City of Buda of material and substantial defects and deficiencies in the work of contractors which are discovered by the Engineer or otherwise brought to the Engineer’s attention in the course of construction.
6. Additional construction materials testing to include laboratory and field testing of soils and paving. These services will be provided by Fugro Inc., as detailed in the attached proposal.
7. Provide additional construction phase surveying to establish up to three (3) additional temporary benchmarks for use as horizontal and vertical control points by the construction contractor, for the portion of the proposed force main alignment located east of IH-35.
8. Based on the Engineer’s on-site observations as an experienced and qualified professional, and upon review of applications for payment and the accompanying data and schedules, determine the amounts owing to the Contractor and recommend in writing payments to the Contractor in such amounts. This proposal is based on two (2) additional monthly pay estimates with each pay estimate requiring approximately two (2) man-hours each.
10. Prepare additional record drawings assembled from the Contractor’s markups of changes made during the construction process. Provide the City of Buda three (3) copies of the
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 10 of 13 Scope of Services
Agenda Packet - Page 134 of 192
record drawings, one (1) set of reproducible (Mylar) drawings, and the associated CAD files in electronic format on CD-ROM.
Exhibit No. 5B provides an itemization of the labor and expenses associated with these Effluent Force Main Construction Phase Tasks.
SPECIAL SERVICES The above Scope of Services and the budget presented herein does not include the following services. If and when it is determined that these services may be required, AECOM will obtain authorization from the City of Buda before performing any of these additional services. 1. Significant revisions requested by the City of Buda or GBRA after receiving initial direction by the City of Buda or after obtaining approvals from the TCEQ. 2. Travel and subsistence required of AECOM and authorized by the City of Buda to points other than the project site or City of Buda offices. 3. Filing, review, permit, inspection and other fees assessed by the City, County or State. 4. The publication of the “Advertisement for Bid” and the fees associated with this publication. 5. Services of a resident project representative and other field personnel for on-site observation of construction. 6. Construction phase survey control staking or verifications, except as defined herein. 7. Preparation of an environmental assessment of the project site or pipeline alignments. 8. Assistance to the City of Buda as an expert witness in any litigation with third parties arising from the development or construction of the project. 9. Any warranty phase engineering services. 10. Public involvement meetings. 11. Services related to preparation, submittal, and processing of permit applications, other than as defined herein. Should the City of Buda and AECOM agree that any of the above Special Services or any other additional services are required AECOM will prepare a cost proposal for such services and obtain authorization from the City of Buda prior to performing any special services.
SCHEDULE Schedule for TPDES Permit Assistance, WWTP Expansion, and Effluent Force Main will be as stipulated in the base contract, plus additional three months required during the Preliminary Engineering Phase for evaluation, selection, and implementation of the proposed alternative outfall. Preliminary Engineering for the WWTP Expansion and Effluent Force Main will be completed within nine (9) months of obtaining authorization to proceed from the City of Buda. Schedules for Final Design, Bidding, and Construction Phase Services for the WWTP Expansion, and Effluent Force Main will be as stipulated in the base contract.
Preliminary Engineering for the Influent Gravity Sewer will be completed within two (2) months of obtaining authorization to proceed from the City of Buda. The final design phase scope of work for the Influent Gravity Sewer will be completed within two (2) months of acceptance of the preliminary engineering design. During the design phase, milestone reviews with the City of Buda will be conducted at 60% and 90% complete. Submittals of milestone review packages will be made one week prior to the scheduled review meetings.
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 11 of 13 Scope of Services
Agenda Packet - Page 135 of 192
Bidding of the Influent Gravity Sewer project and construction contract execution are anticipated to require two (2) months. The Construction Phase Services budget stipulated in this proposal for the WWTP Expansion is based on a construction phase duration of up to three (3) months. It is assumed that the design of the proposed influent gravity sewer will be coordinated with the design of the proposed headworks facilities for the WWTP Expansion Project, and that this co- ordination may impact the influent gravity sewer project schedule.
DELIVERABLES Deliverables to be submitted to the City of Buda are as stipulated in the base contract, plus the following additional deliverables for the proposed Influent Gravity Sewer: Preliminary Engineering Design Phase: 1. Five copies of the draft preliminary phase drawing Exhibits and cost estimate. 2. Five copies of the finalized preliminary phase drawing Exhibits and cost estimate. Final Design Phase: 1. Five sets of 60% and 90% milestone review packages for the influent gravity sewer, including reduced size plans, draft specifications and known changes to the cost estimate. 2. Five copies of the final engineering letter report. 3. Five full size sets of the completed plans and specifications, at the end of the final design phase. 4. Finalized estimates of probable construction cost. Bid Phase: 1. Half-size sets of bid documents for the influent gravity sewer project. 2. Up one (1) Addendum for bidding of the influent gravity sewer. 3. Conformed construction documents, plans and specifications for contract execution. Construction Phase:
1. Full size and half size sets of the executed conformed construction documents for use by the Contractor and the City of Buda during construction. 2. Three (3), full size paper copies of as-built record drawings, one full size set of reproducible record drawings, and one electronic version of record drawings files.
INFORMATION REQUIRED FROM THE CITY OF BUDA The following information is to be provided to AECOM by the City of Buda.
1. Record drawings or construction drawings for the existing gravity sewer. 2. Topographic survey conducted for design of the existing gravity sewer. 3. Geotechnical Data reports for subsurface conditions on the existing gravity sewer alignment. 4. Report(s) for Environmental and Cultural Resources investigations performed along the existing gravity sewer alignment.
March 10, 2015 Buda WWTP Phase III Expansion SA No. 1 Page 12 of 13 Scope of Services
Agenda Packet - Page 136 of 192 Agenda Packet - Page 137 of 192 CITY OF BUDA EXHIBIT No. 1 WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT SUPPLEMENTAL AMENDMENT No. 1 SUMMARY
BASIC SERVICES
Component AECOM Subcontracted Engineering Phase Subtotals Services Services Total
Preliminary Engineering $ 84,991 TPDES Permitting Support $ 6,970 $ 6,470 $ 500 $ 6,970 Influent Gravity Sewer Prelim Design $ 29,425 $ 17,615 $ 11,810 $ 29,425 WWTP Expansion Prelim Design $ 12,730 $ 12,730 $ - $ 12,730 Force Main Prelim Design $ 35,866 $ 19,600 $ 16,266 $ 35,866 Final Design $ 60,555 Influent Gravity Sewer Final Design $ 21,995 $ 21,995 $ - $ 21,995 WWTP Expansion Final Design $ 10,080 $ 10,080 $ - $ 10,080 Force Main Final Design $ 28,480 $ 17,980 $ 10,500 $ 28,480 Bid Phase $ 4,210 Influent Gravity Sewer Bid Phase $ 4,210 $ 4,210 $ - $ 4,210 Construction Phase Services $ 37,850 Influent Gravity Sewer Construction Phase $ 19,375 $ 12,125 $ 7,250 $ 19,375 Force Main Construction Phase $ 18,475 $ 11,275 $ 7,200 $ 18,475 Subtotals $134,080 $ 53,526 Total Estimated Fee - Basic Services $187,606
Agenda Packet - Page 138 of 192 CITY OF BUDA EXHIBIT No. 2 WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT PRELIMINARY ENGINEERING - SUMMARY
FRINGE PRINCIPAL/ PROJ. PROJ. GRAD. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
TPDES Permitting Support Services 2 20 0 12 4 2 40 Influent Gravity Sewer Preliminary Engineering 5 23 39 4 50 2 123 WWTP Preliminary Engineering Design 5 20 32 0 16 12 85 Effluent Force Main Preliminary Engineering 2 36 38 8 50 2 136
TOTAL HOURS 14 99 109 24 120 18 384 DIRECT LABOR TOTALS $1,260 $6,435 $5,450 $840 $3,600 $450 $18,035 FRINGE & GENERAL/ADMIN. COSTS $2,520 $12,870 $10,900 $1,680 $7,200 $900 $36,070 TOTAL LABOR COSTS $3,780 $19,305 $16,350 $2,520 $10,800 $1,350 $54,105
NON-LABOR ESTIMATE ITEM TOTAL Internal Printing (8.5 x 11 photocopies) $60 Outside Printing $90 Courier $60 Mileage $300 CADD $1,800 TOTAL NON-LABOR COSTS $2,310
SUBCONSULTANT SERVICES ESTIMATE SUBCONSULTANT SERVICES ESTIMATE Survey - McKim&Creed $16,136 Geotechnical - Fugro, Inc. $12,440
TOTAL SUBCONTRACTOR COSTS $28,576
TOTAL FEE ESTIMATE: $84,991
Agenda Packet - Page 139 of 192 CITY OF BUDA EXHIBIT No. 2A WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT PRELIMINARY ENGINEERING TPDES PERMITTING SUPPORT (ADDITIONAL OUTFALL)
FRINGE PRINCIPAL/ PROJ. PROJ. GRAD. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
1. Advance coordination with TCEQ 4 4 2. Co-ordination with City and Sunfield MUD 8 8 11. Complete Technical Worksheet 2.0 1 4 8 2 1 16 12. Complete Technical Worksheet 2.1 1 4 4 2 1 12
TOTAL HOURS 2 20 0 12 4 2 40 DIRECT LABOR TOTALS $180 $1,300 $0 $420 $120 $50 $2,070 FRINGE & GENERAL/ADMIN. COSTS $360 $2,600 $0 $840 $240 $100 $4,140 TOTAL LABOR COSTS $540 $3,900 $0 $1,260 $360 $150 $6,210
NON-LABOR ESTIMATE ITEM QTY. RATE TOTAL Internal Printing (8.5 x 11 photocopies) LS 1 $40 $40 Outside Printing LS 1 $40 $40 Mileage LS 1 $100 $100 Courier Ea. 2 $10 $20 CADD Hrs. 4 $15 $60 TOTAL NON-LABOR COSTS $260
SUBCONSULTANT SERVICES ESTIMATE Survey - McKim&Creed - Survey Outfall Lat./Long. $500
TOTAL SUBCONTRACTOR COSTS $500
TOTAL FEE ESTIMATE: $6,970
Agenda Packet - Page 140 of 192 CITY OF BUDA EXHIBIT No. 2B WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT SUPPLEMENTAL AMENDMENT NO. 1 - INFLUENT GRAVITY SEWER REPLACEMENT PRELIMINARY ENGINEERING DESIGN
FRINGE PRINCIPAL/ PROJ. PROJ. GRAD. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
Influent Gravity Sewer Preliminary Design 1. Kickoff meeting 1 1 2. Obtain and Review Record Drawings and data 1 3 4 3. Confirm pipe size, material and hydraulic design 1 1 2 4. Utility Coordination 1 3 2 6 5. Site visit and field evaluation of alignment 1 1 2 6. Define scope & coordinate Surveying 1 2 2 5 7. Define scope & coordinate Geotechnical 1 2 3 8. Recommend Alignment and Assignments 1 2 4 4 11 9. Meet with City and Finalize Alignment 2 2 4 10. Progress Meetings 3 3 11. Define Env/Cultural Permit Requirements 1 3 4 12. Preliminary (30%) plan view drawings 1 4 12 40 1 58 13. Estimate of Probable Construction Cost 1 1 2 4 8 154 Preliminary Project Schedule 1 1 2 16. Finalize draft PER w/ City's comments 1 2 4 2 1 10
TOTAL HOURS 5 23 39 4 50 2 123 DIRECT LABOR TOTALS $450 $1,495 $1,950 $140 $1,500 $50 $5,585 FRINGE & GENERAL/ADMIN. COSTS $900 $2,990 $3,900 $280 $3,000 $100 $11,170 TOTAL LABOR COSTS $1,350 $4,485 $5,850 $420 $4,500 $150 $16,755
NON-LABOR ESTIMATE ITEM QTY. RATE TOTAL Internal Printing (8.5 x 11 photocopies) LS 1 $20 $20 Outside Printing LS 1 $50 $50 Courier Ea. 4 $10 $40 CADD Hrs. 50 $15 $750 TOTAL NON-LABOR COSTS $860
SUBCONSULTANT SERVICES ESTIMATE Survey - McKim&Creed $6,870 Geotechnical - Fugro, Inc. $4,940
TOTAL SUBCONTRACTOR COSTS $11,810
TOTAL FEE ESTIMATE: $29,425
Agenda Packet - Page 141 of 192 CITY OF BUDA EXHIBIT No. 2C WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT PRELIMINARY ENGINEERING WWTP EXPANSION PRELIMINARY ENGINEERING DESIGN
FRINGE PRINCIPAL/ PROJ. PROJ. GRAD. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
1. Progress Meetings 3 12 24 12 51 11. Process and Hydraulic Design n. Dechlorination System Modifications 1 4 4 8 17 p. Effluent Pump Station - additional outfall 1 4 4 8 17
TOTAL HOURS 5 20 32 0 16 12 85 DIRECT LABOR TOTALS $450 $1,300 $1,600 $0 $480 $300 $4,130 FRINGE & GENERAL/ADMIN. COSTS $900 $2,600 $3,200 $0 $960 $600 $8,260 TOTAL LABOR COSTS $1,350 $3,900 $4,800 $0 $1,440 $900 $12,390
NON-LABOR ESTIMATE ITEM QTY. RATE TOTAL Mileage LS 1 $100 $100 CADD Hrs. 16 $15 $240 TOTAL NON-LABOR COSTS $340
SUBCONSULTANT SERVICES ESTIMATE
TOTAL SUBCONTRACTOR COSTS $0
TOTAL FEE ESTIMATE: $12,730
Agenda Packet - Page 142 of 192 CITY OF BUDA EXHIBIT No. 2D WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT PRELIMINARY ENGINEERING EFFLUENT FORCE MAIN PRELIMINARY ENGINEERING DESIGN
FRINGE PRINCIPAL/ PROJ. PROJ. GRAD. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
Force Main Preliminary Design 3. Utility Coordination 1 4 8 8 2 23 4. Site visits and field evaluation of alignment 8 8 16 5. Define scope & coordinate Surveying 4 4 6. Review existing data & coordinate Geotechnical 4 4 7. Recommend Alignment and Assignments 4 8 12 24 9. Determine Need for Easements 2 4 4 10 11. Coordinate Permitting Requirements 6 2 2 10 13. Preliminary (30%) plan view drawings 1 4 8 8 24 45
TOTAL HOURS 2 36 38 8 50 2 136 DIRECT LABOR TOTALS $180 $2,340 $1,900 $280 $1,500 $50 $6,250 FRINGE & GENERAL/ADMIN. COSTS $360 $4,680 $3,800 $560 $3,000 $100 $12,500 TOTAL LABOR COSTS $540 $7,020 $5,700 $840 $4,500 $150 $18,750
NON-LABOR ESTIMATE ITEM QTY. RATE TOTAL Mileage LS 1 $100 $100 CADD Hrs. 50 $15 $750 TOTAL NON-LABOR COSTS $850
SUBCONSULTANT SERVICES ESTIMATE Survey - McKim&Creed $8,766 Geotechnical - Fugro, Inc. $7,500
TOTAL SUBCONTRACTOR COSTS $16,266
TOTAL FEE ESTIMATE: $35,866
Agenda Packet - Page 143 of 192 CITY OF BUDA EXHIBIT No. 3 WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT FINAL DESIGN - SUMMARY
FRINGE PRINCIPAL/ PROJ. PROJ. GRAD. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
Influent Gravity Sewer Final Design 3 26 48 0 80 5 162 WWTP Expansion Final Design 2 16 24 0 24 0 66 Effluent Force Main Final Design 3 24 36 0 58 2 123
TOTAL HOURS 8 66 108 0 162 7 351 DIRECT LABOR TOTALS $720 $4,290 $5,400 $0 $4,860 $175 $15,445 FRINGE & GENERAL/ADMIN. COSTS $1,440 $8,580 $10,800 $0 $9,720 $350 $30,890 TOTAL LABOR COSTS $2,160 $12,870 $16,200 $0 $14,580 $525 $46,335
NON-LABOR ESTIMATE ITEM TOTAL Internal Printing (8.5 x 11 photocopies) $70 Outside Printing $880 Courier $40 Mileage $300 CADD $2,430 TOTAL NON-LABOR COSTS $3,720
SUBCONSULTANT SERVICES ESTIMATE Survey - McKim&Creed (metes/bounds 3 parcels) $10,500
TOTAL SUBCONTRACTOR COSTS $10,500
TOTAL FEE ESTIMATE: $60,555
Agenda Packet - Page 144 of 192 CITY OF BUDA EXHIBIT No. 3A WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT SUPPLEMENTAL AMENDMENT NO. 1 - INFLUENT GRAVITY SEWER REPLACEMENT FINAL DESIGN
FRINGE PRINCIPAL/ PROJ. PROJ. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
1. Meeting with City to Confirm Design Basis 1 1 2. Milestone Submittal Review Meetings 3 3 3. Final Hydraulic Design 1 2 3 4. Final Plan and Profile Drawings 4 10 36 50 5. General Drawing Sheets and Traffic Control Plan 3 8 24 35 6. Prepare Construction Contract Documents 4 1 5 7. Prepare Technical Specifications 1 8 1 10 8. 60% and 90% Submittals / Incorporate Comments 1 4 8 16 29 9. Final Estimate of Probable Construction Cost 1 8 1 10 10. Prepare Construction Document Package 1 2 4 4 1 12 11. Submission to TCEQ 1 2 1 4
TOTAL HOURS 3 26 48 0 80 5 162 DIRECT LABOR TOTALS $270 $1,690 $2,400 $0 $2,400 $125 $6,885 FRINGE & GENERAL/ADMIN. COSTS $540 $3,380 $4,800 $0 $4,800 $250 $13,770 TOTAL LABOR COSTS $810 $5,070 $7,200 $0 $7,200 $375 $20,655
NON-LABOR ESTIMATE ITEM QTY. RATE TOTAL Internal Printing (Specifications/Half Size ) LS 1 $20 $20 Outside Printing (Full Size Plan Sets) Ea. 4 $20 $80 Courier Ea. 5 $8 $40 CADD Hrs. 80 $15 $1,200 TOTAL NON-LABOR COSTS $1,340
SUBCONSULTANT SERVICES ESTIMATE
TOTAL SUBCONTRACTOR COSTS $0
TOTAL FEE ESTIMATE: $21,995
Agenda Packet - Page 145 of 192 CITY OF BUDA EXHIBIT No. 3B WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT FINAL DESIGN WWTP EXPANSION FINAL DESIGN
FRINGE PRINCIPAL/ PROJ. PROJ. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL 1. Final Design incl. Plans and Specifications n. Dechlorination System 1 8 12 12 33 p. Effluent Pump Station 1 8 12 12 33
TOTAL HOURS 2 16 24 0 24 0 66 DIRECT LABOR TOTALS $180 $1,040 $1,200 $0 $720 $0 $3,140 FRINGE & GENERAL/ADMIN. COSTS $360 $2,080 $2,400 $0 $1,440 $0 $6,280 TOTAL LABOR COSTS $540 $3,120 $3,600 $0 $2,160 $0 $9,420
NON-LABOR ESTIMATE ITEM QTY. RATE TOTAL Mileage LS 1 $300 $300 CADD Hrs. 24 $15 $360 TOTAL NON-LABOR COSTS $660
SUBCONSULTANT SERVICES ESTIMATE
TOTAL SUBCONTRACTOR COSTS $0
TOTAL FEE ESTIMATE: $10,080
Agenda Packet - Page 146 of 192 CITY OF BUDA EXHIBIT No. 3C WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT FINAL DESIGN EFFLUENT FORCE MAIN FINAL DESIGN
FRINGE PRINCIPAL/ PROJ. PROJ. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
4. Plan and Profile Drawings 1 8 12 40 61 5. Permit Applications 1 12 8 2 2 25 7. Traffic Control Plan 1 4 16 16 37
TOTAL HOURS 3 24 36 0 58 2 123 DIRECT LABOR TOTALS $270 $1,560 $1,800 $0 $1,740 $50 $5,420 FRINGE & GENERAL/ADMIN. COSTS $540 $3,120 $3,600 $0 $3,480 $100 $10,840 TOTAL LABOR COSTS $810 $4,680 $5,400 $0 $5,220 $150 $16,260
NON-LABOR ESTIMATE ITEM QTY. RATE TOTAL Internal Printing (Specifications/Front-End) LS 1 $50 $50 Outside Printing (Half Size Plan Sets) Ea. 14 $40 $560 Outside Printing (Full Size Plan Sets) Ea. 4 $60 $240 CADD Hrs. 58 $15 $870 TOTAL NON-LABOR COSTS $1,720
SUBCONSULTANT SERVICES ESTIMATE Survey - McKim&Creed (metes/bounds 3 parcels) $10,500
TOTAL SUBCONTRACTOR COSTS $10,500
TOTAL FEE ESTIMATE: $28,480
Agenda Packet - Page 147 of 192 CITY OF BUDA EXHIBIT No. 4 WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT SUPPLEMENTAL AMENDMENT NO. 1 BID PHASE SERVICES - INFLUENT GRAVITY SEWER REPLACEMENT
PRINCIPAL FRINGE / TECH. PROJ. PROJ. and G&A Direct Labor Rates and Multipliers DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
1. Prepare Advertisement for Bid Form 1 1 2. Produce and Distribute Bid Documents 1 2 2 5 3. Pre-Bid Conference 2 2 4. Respond to Prospective Bidders' Questions 2 2 5. Issue Contract Addenda 1 2 2 2 6. Assist Receipt of Bids and Prepare Tabulation 1 2 3 7. Prepare Contract Documents for Execution 1 1 1 2 5
TOTAL HOURS 2 10 5 0 6 2 25 DIRECT LABOR TOTALS $180 $650 $250 $0 $180 $50 $1,310 FRINGE & GENERAL/ADMIN. COSTS $360 $1,300 $500 $0 $360 $100 $2,620 TOTAL LABOR COSTS $540 $1,950 $750 $0 $540 $150 $3,930
NON-LABOR ESTIMATE ITEM QTY. RATE TOTAL Internal Printing LS 1 $50 $50 Outside Printing LS 1 $100 $100 Courier Ea. 5 $8 $40 CADD Hrs. 6 $15 $90 TOTAL NON-LABOR COSTS $280
SUBCONSULTANT SERVICES ESTIMATE
TOTAL SUBCONTRACTOR COSTS $0
TOTAL FEE ESTIMATE: $4,210
Agenda Packet - Page 148 of 192 CITY OF BUDA EXHIBIT No. 5 WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT CONSTRUCTION PHASE - SUMMARY
FRINGE PRINCIPAL/ PROJ. PROJ. GRAD. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
Influent Gravity Sewer Construction Phase Services 3 20 9 24 16 23 95 Effluent Force Main Construction Phase Services 1 34 5 12 18 1 71
TOTAL HOURS 4 54 14 36 34 24 166 DIRECT LABOR TOTALS $360 $3,510 $700 $1,260 $1,020 $600 $7,450 FRINGE & GENERAL/ADMIN. COSTS $720 $7,020 $1,400 $2,520 $2,040 $1,200 $14,900 TOTAL LABOR COSTS $1,080 $10,530 $2,100 $3,780 $3,060 $1,800 $22,350
NON-LABOR ESTIMATE ITEM TOTAL Internal Printing (8.5 x 11 photocopies) $45 Outside Printing $355 Courier $40 Mileage $100 CADD $510 TOTAL NON-LABOR COSTS $1,050
SUBCONSULTANT SERVICES ESTIMATE Construction Materials Testing - Fugro Inc. $13,950 Survey - McKim & Creed (confirm/re-establish TBMs) $500
TOTAL SUBCONTRACTOR COSTS $14,450
TOTAL FEE ESTIMATE: $37,850
Agenda Packet - Page 149 of 192 CITY OF BUDA EXHIBIT No. 5A WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT SUPPLEMENTAL AMENDMENT NO. 1 - INFLUENT GRAVITY SEWER REPLACEMENT CONSTRUCTION PHASE
FRINGE PRINCIPAL/ PROJ. PROJ. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
1. Pre-Construction Conference 1 1 2. Instructions and RFIs 1 2 4 4 11 3. Change Orders 1 2 2 4 9 4. Construction Site Visits 3 3 5. Review Shop Drawings and Submittals 4 22 22 48 6. Review Construction Materials Test Reports 1 2 3 7. Establish Horizontal and Vertical Control TBMs 1 1 8. Review Monthly Pay Estimates 3 3 9. Final Review of the Project 1 1 2 10. Prepare Record Drawings 1 2 2 8 1 14
TOTAL HOURS 3 20 9 24 16 23 95 DIRECT LABOR TOTALS $270 $1,300 $450 $840 $480 $575 $3,915 FRINGE & GENERAL/ADMIN. COSTS $540 $2,600 $900 $1,680 $960 $1,150 $7,830 TOTAL LABOR COSTS $810 $3,900 $1,350 $2,520 $1,440 $1,725 $11,745
NON-LABOR ESTIMATE ITEM QTY. RATE TOTAL Internal Printing (8.5 x 11 photocopies) LS 1 $20 $20 Outside Printing (Full Size Record Dwgs - Paper) Ea. 1 $80 $80 Courier Ea. 5 $8 $40 CADD Hrs. 16 $15 $240 TOTAL NON-LABOR COSTS $380
SUBCONSULTANT SERVICES ESTIMATE Construction Materials Testing - Fugro Inc. $7,250
TOTAL SUBCONTRACTOR COSTS $7,250
TOTAL FEE ESTIMATE: $19,375
Agenda Packet - Page 150 of 192 CITY OF BUDA EXHIBIT No. 5B WASTEWATER TREATMENT PLANT PHASE III EXPANSION PROJECT EFFLUENT FORCE MAIN CONSTRUCTION PHASE
FRINGE PRINCIPAL/ PROJ. PROJ. and G&A Direct Labor Rates and Multipliers TECH. DIR. MGR. ENGR. ENGR. TECH. CLER. MULT. 90 65 50 35 30 25 2.00 LABOR ESTIMATE TASK LISTING PRINCIPAL P. MGR. P. ENGR. ENGR. TECH. CLER. TOTAL
2. Instructions and RFIs 1 8 4 10 8 1 32 4. Construction Site Visits 16 16 6. Review Construction Materials Test Reports 3 3 7. Establish Horizontal and Vertical Control TBMs 2 2 8. Review Monthly Pay Estimates 4 4 10. Prepare Record Drawings 1 1 2 10 14
TOTAL HOURS 1 34 5 12 18 1 71 DIRECT LABOR TOTALS $90 $2,210 $250 $420 $540 $25 $3,535 FRINGE & GENERAL/ADMIN. COSTS $180 $4,420 $500 $840 $1,080 $50 $7,070 TOTAL LABOR COSTS $270 $6,630 $750 $1,260 $1,620 $75 $10,605
NON-LABOR ESTIMATE ITEM QTY. RATE TOTAL Internal Printing (8.5 x 11 photocopies) LS 1 $25.00 $25 Outside Printing (Full Size Record Drawings - Paper) Ea. 1 $80 $80 Outside Printing (Full Size Record Drawings - Vellum) Ea. 1 $195 $195 Mileage LS 1 $100 $100 CADD Hrs. 18 $15 $270
TOTAL NON-LABOR COSTS $670
SUBCONSULTANT SERVICES ESTIMATE Construction Materials Testing - Fugro Inc. $6,700 Survey - McKim & Creed (confirm/re-establish TBMs) $500
TOTAL SUBCONTRACTOR COSTS $7,200
TOTAL FEE ESTIMATE: $18,475
Agenda Packet - Page 151 of 192 Agenda Packet - Page 152 of 192 Agenda Packet - Page 153 of 192 AECOM LAND DEVELOPMENT FEE REQUEST BUDA WWTP, TEXAS
Date: REVISED 11/11/2014 Project Name: BUDA WWTP FORCE MAIN REVISED ROUTING Project Manager: WHITE
McK&C Proposal No. 142536
Estimated Start date: 2 DAYS FROM AUTHORIZATION Estimated Completion Date:
FEE TYPE: LS Lump SUM CP Cost Plus CPM Cost Plus Max
AECOM Estimated Estimated total Standard Tasks INITIAL FEE Add'l Fee TOTAL FEE Taxes Billing
- - FORCE MAIN (ROUTE CHANCE) LS 8,766.00 8,766.00 3- PARCEL EASEMENTS LS 10,500.00 10,500.00 - - - TOTAL -$ 19,266.00 - - $ 19,266.00
Description of Work: Force Main 1. Additional 25% route length increase plus 5% increase in utility location. 2.Estimated 3 new easement descriptions at $3,500.00 each.
Submitted by: Darrell D. White
Agenda Packet - Page 154 of 192 Page 1
AECOM LAND DEVELOPMENT FEE REQUEST BUDA WWTP, TEXAS
Date: REVISED 11/11/2014 Project Name: BUDA WWTP FORCE MAIN REVISED ROUTING Project Manager: WHITE
McK&C Proposal No. 142536
Estimated Start date: 2 DAYS FROM AUTHORIZATION Estimated Completion Date:
FEE TYPE: LS Lump SUM CP Cost Plus CPM Cost Plus Max
AECOM INITIAL TOTAL Estimated Estimated Standard Tasks FEE Add'l Fee FEE Taxes total Billing
- - FORCE MAIN (ROUTE CHANCE) LS 8,766.00 8,766.00 3- PARCEL EASEMENTS LS 10,500.00 10,500.00 - - - TOTAL -$ 19,266.00 - - $ 19,266.00
Description of Work: Force Main 1. Additional 25% route length increase plus 5% increase in utility location. 2.Estimated 3 new easement descriptions at $3,500.00 each.
Submitted by: Darrell D. White
Agenda Packet - Page 155 of 192 Agenda Packet - Page 156 of 192 Agenda Packet - Page 157 of 192 Agenda Packet - Page 158 of 192 Agenda Packet - Page 159 of 192 Agenda Packet - Page 160 of 192 Agenda Packet - Page 161 of 192 Agenda Packet - Page 162 of 192 Agenda Packet - Page 163 of 192 Agenda Packet - Page 164 of 192 Agenda Packet - Page 165 of 192 Agenda Packet - Page 166 of 192 Agenda Packet - Page 167 of 192 Agenda Packet - Page 168 of 192 Agenda Packet - Page 169 of 192 Agenda Packet - Page 170 of 192 Agenda Packet - Page 171 of 192 Agenda Packet - Page 172 of 192 Agenda Packet - Page 173 of 192 Buda WWTP – Proposed Effluent Force Main Route
Agenda Packet - Page 174 of 192 Proposed Effluent FM Outfall
Agenda Packet - Page 175 of 192 Agenda Packet - Page 176 of 192
City Council Agenda Item Report April 21, 2015
Agenda Item No. Contact – Ann Miller, Buda EDC, 295-2022 [email protected]
SUBJECT: Presentation, deliberation and possible action regarding Texas Department of Agriculture, “Certified Retirement Community Program”.
1. BACKGROUND/HISTORY In 2009 the Buda Area Chamber of Commerce and Buda Economic Development Corporation embarked on an effort to develop an application for Buda to be recognized as a Certified Retirement Community. In May 2010, an application for the Certified Retirement Community and information about the program was presented to the Buda City Council. Any action was tabled.
2. FINDINGS/CURRENT ACTIVITY In 2015, Buda EDC Board Members requested a presentation about the Certified Retirement Community program. After reviewing the presentation, EDC Board recommended working with city staff/council to gauge interest in applying. Potential EDC Support may include application assistance, payment of application fee, and implementation assistance.
3. FINANCIAL IMPACT TBD
4. ACTION OPTIONS/RECOMMENDATION Desire to Move Forward – Provide Direction to Staff/EDC No Desire to Move Forward – No Action
Agenda Packet - Page 177 of 192 GO TEXAN Certified Retirement Community Program Guidelines
Texas Department of Agriculture P.O. Box 12847 Austin, Texas 78711
CRC Guidelines Page 1 of 15 3/28/14 Agenda Packet - Page 178 of 192 This document is a guide for the GO TEXAN Certified Retirement Community Program (CRC). Rules governing the program are found in the Texas Administrative Code, Title 4, Part 1, Chapter 29 Subchapter C. The goal of the program, as mandated by HB 1982 enacted by the Texas Legislature during the 79th Legislative Session, is to promote Texas as the premier retirement destination. All documentation submitted in the application for certification is subject to the Texas Public Information Act. The application and any requests for additional information should be addressed to:
GO TEXAN Certified Retirement Community Program Attention: Richard De Los Santos Texas Department of Agriculture P.O. Box 12847 Austin, Texas 78711
[email protected] www.RetireInTexas.org
CRC Guidelines Page 2 of 15 3/28/14 Agenda Packet - Page 179 of 192 Table of Contents
Section 1 Overview of the program Page 4
Section 2 Application preparation information Pages 5-7
Section 3 Information to know if an application is approved Pages 8
Section 4 Application packet Page 9-15
CRC Guidelines Page 3 of 15 3/28/14 Agenda Packet - Page 180 of 192 SECTION 1
Overview of the Program
The GO TEXAN Certified Retirement Community Program (CRC) is a program administered by the Texas Department of Agriculture (TDA) to help Texas communities encourage retirees and potential retirees to make their homes in Texas communities.
The CRC program: promotes Texas as the premier retirement destination to retirees and potential retirees both in and outside Texas; assists Texas communities in their efforts to market themselves as desirable retirement locations and to develop communities that retirees would find attractive for a retirement lifestyle; assists retirement communities and long-term living communities in driving economic development, attracting potential workforce and enriching Texas communities; and, encourages tourism to Texas .
An applicant community must be a unit of general local government (a city or county).
The applicant must designate a sponsor (Local Contact Person, Section C on the application form) who will be responsible for working with the department during the application process and will serve as the primary contact for disseminating information to potential retirees through the CRC program if the certification is approved. The sponsor should be part of a recognizable entity within the community (such as a chamber or economic development corporation), have a physical location with regular office hours, and should have the capacity and resources to manage the community’s retirement recruitment efforts.
The applicant must include a list of the Community’s Retirement Board/Panel members and the organizations each member represents.
CRC Guidelines Page 4 of 15 3/28/14 Agenda Packet - Page 181 of 192 SECTION 2
Application preparation information
Applicant Requirements – An applicant must meet and document all of the following requirements for its application to be considered:
1. Designate a board or panel to serve as the community's official program sponsor. List the Local Contact Person on Section C on the application form; 2. Complete and sign an application form; 3. Complete the checklist; 4. Provide a retiree desirability assessment. This self assessment, which will help determine your community’s desirability to retirees, should include facts regarding crime statistics, tax information, recreational opportunities, housing availability and other appropriate factors as described below; 5. Complete the score sheet by self scoring the application; 6. Demonstrate community support from churches, clubs, businesses, media, hospitals and other health care providers, banks, utility providers, nonprofits, elected officials, retirees and other entities; 7. Complete a marketing plan detailing the mission as applied to the community; the target market; the competition; an analysis of the community's strengths, weaknesses, opportunities and threats; and the strategies the community will employ to attain the goals of the program; 8. Complete a long-term plan outlining the steps the community will undertake to maintain its desirability as a destination for retirees, including an outline of plans to correct any facility and service deficiencies identified in the retiree desirability assessment described in this section; and, 9. Upon notification of approval of the application, submit a fee in an amount equal to the greater of: $5,000 or $0.25 multiplied by the population of the community, as determined by the most recent census. 10. Do not submit payment with this application. TDA will provide an invoice upon approval.
Application Process 1. Each applicant must submit a completed application. No changes to the application will be allowed after the application is received, unless they are a result of TDA staff recommendations. Applications are available from TDA. Completed applications should be submitted to: Texas Department of Agriculture Marketing & International Trade P.O. Box 12847 Austin, Texas 78711 2. TDA staff will score the applications and review the applications for eligibility and completeness. The applicant will be notified of any deficiencies and given 20 days to rectify deficiencies. Staff may work with the applicant to improve or modify the application, with the intent of improving the application and helping the applicant achieve certification. An application containing an excessive number of deficiencies, or deficiencies of a material nature, will be determined incomplete and may not be considered for certification. 3. After the scoring and application process is complete, staff will make a recommendation for approval or denial of the request for certification to the TDA Commissioner or his/her designee. The Commissioner makes the final decision. 4. TDA will notify the applicant of approval or denial of the application within 90 days of the date of the receipt of the completed application. 5. An application that has been withdrawn or declined for any reason may be resubmitted.
CRC Guidelines Page 5 of 15 3/28/14 Agenda Packet - Page 182 of 192 Contents of Application and Binder Preparation All application information should be in a three-ring binder. The binder should be organized and tabbed as indicated below. An electronic copy of all documents submitted is not required, but may help expedite the application review process. An electronic copy may also be included in the binder.
1. TAB 1: Completed and signed application form with completed check list; 2. TAB 2: Retiree Desirability Assessment. The Retiree Desirability Assessment is intended to help the community identify areas of strengths and weaknesses and should help the community determine the type of retirees that the community believes would be interested in moving to the area. The assessment is intended to serve as the basis for the community’s marketing and planning efforts. Although additional details or assessment of other areas of the community will not be scored, the community is encouraged to include any information that it feels would be beneficial in its efforts to meet the community’s objectives for the program.
Specifically, the assessment, which can include photos, maps, graphs and any other references should cover the following:
(tabbed A-O) A. Community overview - demographics, geography and climate (at a minimum); B. Texas tax structure - state and local; C. Local housing availability, opportunities and cost; D. Personal safety, security and crime statistics; E. Employment and volunteer opportunities; F. Availability of health care services and other services along the continuum of care, including home- based and community-based services, housing for the elderly, assisted living, personal care and nursing care facilities; G. Availability of emergency medical services and the name and location of any hospital within a 75-mile radius of the community; H. Public transportation and major highways; I. Continuing education; J. Leisure living; K. Recreational areas and facilities; L. The performing arts; M. Festivals and events; N. Sports at all levels; and O. Additional information.
3. TAB 3: Completed score sheet 4. TAB 4: Letters or evidence of support from area churches, associations, businesses, media, hospitals and other health care providers, banks, utility providers, nonprofits, elected officials, retirees and other entities, as necessary that support your community’s participation in the program. 5. TAB 5: A marketing plan detailing: A. the mission as applied to being a Certified Retirement Community; B. the target market; C. the goals of the community D. the strategies/tactics the community will employ to attain the goals of the program. 6. TAB 6: A long-term plan outlining: A. the steps the community will undertake to maintain its desirability as a destination for retirees; and B. plans to correct any facility and service deficiencies identified in the retiree desirability assessment. 7. TAB 7: List the Community’s Retirement Advisory Board/Panel to include members and the organization they represent.
CRC Guidelines Page 6 of 15 3/28/14 Agenda Packet - Page 183 of 192 Additional information Other areas of interest (that are not part of the scoring process) may be included with the tabbed sections and may be valuable in creating a retiree community marketing plan. Section "O" has been included in the Retiree Desirability Assessment section (TAB 2) to allow for discussion and inclusion in the application binder. Possible topics include: information on financial services and retail businesses; costs of electricity and water; availability of cable/satellite television; availability of high-speed Internet services; telework, business development and volunteer opportunities; availability of long-term services and supports (both community and residential); emergency services such as fire departments and EMS (voluntary or paid staff); number of physicians that accept Medicaid and Medicare; efforts of local pharmacies to work with Medicare Drug plan and prescription bottles readable by persons with low vision; information about the elderly-disabled homestead exemption, Texas policy on Social Security Income (SSI) and other useful tax information; facilities certified as accessible by the Texas Department of Licensing and Regulations; availability of accessible housing and accessible housing features; local ordinances for the protection of people with disabilities; pedestrian friendly elements such as, sidewalks, curb cuts, audible pedestrian signals, etc.; local business efforts to make reasonable accommodations for people with disabilities; and, accessible parks and trails and accessible golf courses and swimming pools for persons with disabilities.
Resources for Assessment There are many resources to assist the applicant with completing the assessment. Helpful links include: Aging Texas Well: www.agingtexaswell.org US Census quick facts: http://quickfacts.census.gov/qfd/states/48000.html County Narratives: http://socrates.cdr.state.tx.us/CNP/index.asp Councils of Governments: www.txregionalcouncil.org/ Governor’s Committee on People with Disabilities: www.governor.state.tx.us/disabilities/ Texas Department of Rural Affairs: www.orca.state.tx.us/ Texas Department of Aging and Disability Services (DADS): www.dads.state.tx.us/ Melissadata Crime Index: www.melissadata.com/lookups/CrimeCity.asp?State=TX48Texas&CrimeYear=2008&submit1=Submit City-Data.com: www.city-data.com/
CRC Guidelines Page 7 of 15 3/28/14 Agenda Packet - Page 184 of 192 SECTION 3
Information to know if an application is approved
Invoice You will receive an invoice upon approval. Do not send payment with application.
Assistance to Certified Communities Once a community is certified, TDA shall provide the following assistance to communities:
Marketing – oversight and guidance in promoting the community as a great place to retire through assistance with the development of advertisements, promotion through social media and in press releases; Advertising and/or promotion via social and earned media; Visibility – communities will be listed on TDA’s website; Visits – TDA staff may schedule visits to community to measure the effectiveness and satisfaction of the community with the local and state programs.
Use of “GO TEXAN Certified Retirement Community" or other Department Marks Certification under this program shall allow the approved community to use the program mark as well as any marks created by TDA to certify that the community is indeed part of the GO TEXAN Marketing Program and to promote the community to retirees, potential retirees and to any other interested parties upon the execution of a licensing agreement with TDA.
Expiration and Renewal of Certification A community's certification expires on the fifth anniversary of the date the initial certification is issued.
To be considered for recertification by TDA, an applicant community must:
complete and submit a new application; submit data demonstrating the success or failure of the community's efforts to market and promote itself as a desirable location for retirees and potential retirees; and submit a new certification fee as outlined in program rules.
CRC Guidelines Page 8 of 15 3/28/14 Agenda Packet - Page 185 of 192 SECTION 4
Application packet
All fields on the application must be completed. The application must be signed and dated by the community's chief elected official or his/her designee to represent the community.
At the end of the application is a checklist of the items on the Retiree Desirability Assessment that are to be included in the binder under Tab 2. A score sheet follows the assessment, which breaks out the scored details that must be included to receive the specified points. The community's size, based on population, will place the applicant in a small, medium or large community category. Each category has a minimum point level to qualify for certification.
Responses to the topics on the Retiree Desirability Assessment must be placed behind the checklist, in accordance with the guidelines, Section 2, Application Preparation Information.
Scoring Criteria - The following is a list of the selection criteria used by TDA when reviewing CRC applications. Applicants are scored on four sections, as follows. There are a total of 185 possible points. Retiree Desirability Assessment 120 points Community Support 20 points Marketing Plan 25 points Long-Term Plan 20 points
Small Communities: Cities with less than 10,000 in population (per most recent Census) and counties with less than 25,000 must have at least 130 points to be certified as a GO TEXAN Certified Retirement Community.
Mid-sized Communities: Cities with a population from 10,001 to 50,000 (per most recent Census) and counties from 25,001 to 200,000 must have at least 150 points to be certified as a GO TEXAN Certified Retirement Community.
Large Communities: Cities with greater than 50,000 in population and counties with greater than 200,000 (per most recent Census) must have at least 170 points to be certified as a GO TEXAN Certified Retirement Community.
FAILURE TO SUBMIT ALL DOCUMENTATION TO SUPPORT EACH SCORING SECTION WILL RESULT IN THE LOSS OF POINTS. ALL DOCUMENTATION MUST BE ORGANIZED AS OUTLINED IN SECTION 2, APPLICATION PREPARATION.
Payment - Do not send payment with the application packet. Upon approval TDA will invoice you.
CRC Guidelines Page 9 of 15 3/28/14 Agenda Packet - Page 186 of 192 Detailed Assessment Information Respond on a separate sheet to items A-O that apply to your community
(A) Community Overview - Demographics, Geography and Climate Does the assessment include information on the community’s demographics, geography and climate?
(B) Texas Tax Structure – State and local Does the assessment address the state and local tax structure including, at a minimum, the local property tax rates and local sales tax rates? Does the city (if the applicant is a city) limit the city tax on homesteads for residents 65 years of age or older, as authorized by Section 1-b(h), Article III, Texas Constitution? If the applicant is a county, mark “N/A.” Does the county limit the county tax on homesteads for residents 65 years of age or older, as authorized by Section 1-b(h), Article III, Texas Constitution?
(C) Local Housing Availability, Opportunity and Cost Does the assessment address the local housing market, including, at a minimum, information on: Resale and rental properties including single-family and multi-family options in a variety of price ranges. Resale and rental properties designed and equipped to meet the needs of individuals who are disabled or mobility impaired. Inventories that are convenient to public transportation services.
(D) Personal Safety, Security and Crime Statistics Does the assessment address public safety and crime index? Score 5 additional points if the crime index is at or below the state average for the most recent year available. Score an additional 5 points if the crime index is at or below 80% of the state average.
(E) Employment Opportunities Does the assessment address local employment opportunities for retirees, including, at a minimum, information on full-time jobs, part-time jobs and business opportunities available in a variety of trade, professions and services.
(F) Health Services Does the assessment address healthcare availability for retirees, including information on hospitals, physician services, pharmacy services and long-term care options?
(G) Emergency Medical Services Does the assessment address emergency services for retirees?
(H) Public Transportation and Major Highways Does the assessment address transportation for retirees, including information on major highways, public transportation systems including air, rail, taxi and scheduled bus services?
(I) Continuing Education Does the assessment address educational opportunities available to retirees, including information on: Museums; Colleges or universities; Lifetime learning programs Zoos and zoological or botanical gardens; Concerts; Theatre; and Dance
(J) Leisure Living Does the assessment address the leisure living in the local area, including the opportunity to interact with citizens of all ages?
CRC Guidelines Page 10 of 15 3/28/14 Agenda Packet - Page 187 of 192 Detailed Assessment Information - Continued (K) Recreational Areas and Facilities Does the assessment include information regarding local recreational activities as they might be desirable by retirees including, but not limited to: Public parks Boating and sport fishing facilities Public and private golf courses Public and private tennis courts Public walking, hiking and cycling trails Fitness centers Senior and/or community centers
(L) Performing Arts Does the assessment include information regarding local opportunities to view and/or participate in cultural opportunities, including, but not limited to: Concerts Theatre Dance
(M) Festivals and Events Does the assessment address festivals and events in the local area, including any opportunities to serve as a volunteer for the events?
(N) Sports at all levels Does the assessment address sporting opportunities and events in the local area, including any opportunities for both watching and participating?
(O) Additional Information
CRC Guidelines Page 11 of 15 3/28/14 Agenda Packet - Page 188 of 192 COMMUNITY NAME: ______
SCORE SHEET (A) Community Overview – Demographics, Geography Included or Possible Points scored and Climate addressed? points (TDA use only) Does the assessment include information on the community’s demographics, geography and climate? 5 Included or Possible Points scored (B) Texas Tax Structure – State and local addressed? points (TDA use only) Does the assessment address the state and local tax structure including, at a minimum, the local property tax rates and local sales 5 tax rates? Does the city (if the applicant is a city) limit the city tax on homesteads for residents 65 years of age or older, as authorized by Section 1-b(h), 5 Article III, Texas Constitution? If the applicant is a county, mark “N/A.” Does the county limit the county tax on homesteads for residents 65 years of age or older, as authorized by Section 1-b(h), Article III, 5 Texas Constitution? Included or Possible Points scored (C) Local Housing Availability, Opportunity and Cost addressed? points (TDA use only) Does the assessment address the local housing market, including, at a minimum, information on: Resale and rental properties including single-family and multi- family options in a variety of price ranges. 5 Resale and rental properties designed and equipped to meet the needs of individuals who are disabled or mobility impaired. Inventories that are convenient to public transportation services. (D) Personal Safety, Security and Crime Statistics Recommended source is: http://www.melissadata.com/lookups/CrimeCity.asp?State=TX48Texa Included or Possible Points scored s&CrimeYear=2008&submit1=Submit. If you are unable to locate the addressed? points (TDA use only) crime information for the applicant city or county, please use and site the specific source utilized. Does the assessment address public safety and crime index? 5 Score 5 additional points if the crime index is at or below the state 5 average for the most recent year available. Score an additional 5 points if the crime index is at or below 80% of the 5 state average. Included or Possible Points scored (E) Employment Opportunities addressed? points (TDA use only) Does the assessment address local employment opportunities for retirees, including, at a minimum, information on full-time jobs, part- time jobs, and business opportunities available in a variety of trade, 5 professions, and services.
CRC Guidelines Page 12 of 15 3/28/14 Agenda Packet - Page 189 of 192 COMMUNITY NAME: ______
SCORE SHEET - Continued
Included or Possible Points scored (F) Health Services addressed? points (TDA use only)
Does the assessment address healthcare availability for retirees, including information on hospitals, physician services, pharmacy 5 services and long-term care options? Score 5 additional points if the applicant has one or more fully licensed and accredited acute care general hospitals within 60 5 minutes driving time of any address within the community. Score 5 additional points if the applicant’s county ratio of total persons to each physician is lower than the state average. Use the following website to obtain this information: 5 http://socrates.cdr.state.tx.us/CNP/index.asp
Score 5 additional points if the applicant’s county ratio of total persons to each pharmacy is lower than the state average. Use the following website to obtain this information: 5 http://socrates.cdr.state.tx.us/CNP/index.asp
Included or Possible Points scored (G) Emergency Medical Services addressed? points (TDA use only) Does the assessment address emergency services for retirees? 5 Score 5 additional points if the applicant community has 24-hour paid professional emergency medical service that is fully certified and 5 staffed with qualified personnel. Included or Possible Points scored (H) Public Transportation and Major Highways addressed? points (TDA use only) Does the assessment address transportation for retirees, including information on major highways, public transportation systems 5 including air, rail, taxi and scheduled bus services? Included or Possible Points scored (I) Continuing Education addressed? points (TDA use only) Does the assessment address educational opportunities available to retirees, including information on: Museums; Colleges or Universities; Lifetime learning programs 5 Zoos and zoological or botanical gardens; Concerts; Theatre; and Dance Score 5 additional points if the applicant has a community college or other institution of higher education that offers non-credit classes that 5 would interest retirees.
Score 5 additional points if the applicant has a public library that is open at least 30 hours per week and has public computers with 5 Internet access.
CRC Guidelines Page 13 of 15 3/28/14 Agenda Packet - Page 190 of 192 COMMUNITY NAME: ______
SCORE SHEET - Continued Included or Possible Points scored (J) Leisure Living addressed? points (TDA use only) Does the assessment address the leisure living in the local area, including the opportunity to interact with citizens of all ages? 5
Included or Possible Points scored (K) Recreational Areas and Facilities addressed? points (TDA use only) Does the Assessment include information regarding local recreational activities as they might be desirable by retirees including, but not limited to: Public parks Boating and sport fishing facilities Public and private golf courses 5 Public and private tennis courts Public walking, hiking and cycling trails Fitness centers Senior and/or community centers Included or Possible Points scored (L) Performing Arts addressed? points (TDA use only) Does the assessment include information regarding local opportunities to view and/or participate in cultural opportunities, including, but not limited to: Concerts 5 Theatre Dance Included or Possible Points scored (M) Festivals and Events addressed? points (TDA use only) Does the assessment address festivals and events in the local area, 5 including any opportunities to serve as a volunteer for the events? Included or Possible Points scored (N) Sports at all levels addressed? points (TDA use only) Does the assessment address sporting opportunities and events in the local area, including any opportunities for both watching and 5 participating? Included or Possible Points scored Community Support addressed? points (TDA use only) Evidence or support from area churches, clubs, businesses, media and other entities, as necessary for the success of the program in the 20 community. Score one point for each letter from a uniquely different entity, up to a maximum of 20.
CRC Guidelines Page 14 of 15 3/28/14 Agenda Packet - Page 191 of 192 COMMUNITY NAME: ______
SCORE SHEET - Continued Included or Possible Points scored Marketing Plan addressed? points (TDA use only) A marketing plan detailing: Total: 25 the mission as applied to the community, 5 the target market, 5 5 the competition, an analysis of the community's strengths, weaknesses, 5 opportunities and dangers, and 5 the strategies the community will employ to attain the goals of the program. Score up to 5 points for each section addressed in the inclusion of the marketing plan. Included or Possible Points scored Long-Term Plan addressed? points (TDA use only) A long-term plan outlining: Total: 20 the steps the community will undertake to maintain its 10 desirability as a destination for retirees, and an outline of plans to correct any facility and service deficiencies identified in the retiree desirability assessment. 10 Score up to 10 points for each section addressed in the inclusion of the long-term plan.
CRC Guidelines Page 15 of 15 3/28/14 Agenda Packet - Page 192 of 192